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economic and business - Coggle Diagram
economic and business
6 key concepts
SCARCITY
scarcity is unlimited needs and wants but limited resources. the 4 factors of production include:
- land
- labour
- capital
- entrepreneurship
MAKING CHOICES
We make choices everyday to satisfy our needs and wants. some of which include:
- financialchoices
- business decisions
- employment decisions
- legal decisions
Specialisations and trade
Is helpful as it can help import goods or services from other countries. For example many other countries such as Asia rely on Australia for farming reasons. Specialization refers to the way an individual business or an entire country can focus of the production of a certain good or need.
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Economic performance and living standards
Measure how well an economy is going and the level of wealth, necessities and comfort.
type of economies
subsistence economy
Producers are self efficent aiming to produce enoguh to survive on and no more usually, no need for money
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factors of production
capital, compainies physical equipment and the money its uses to buy resources
enterprise, people who make ideas using land, labour and capital
labour, people turn the resources into goods or services
land, natural resources and the physical space
globalisation
increasing quantities of international trade means economies are dependent for eachother.
for australia this means trade, international labour market, technology and immigration
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saving and investing
Saving is puttting money asside for a future date. We can increase our savings by earning more and spending less
Investing is process of putting money in a commercial venture with the expectation of making a profit
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good and bad debt
what is it?
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Good debt is money borrowed is used to pruchase something that will provide income or increase in value.
Bad debt used to purchase something that will decrease in value over time and/or will not earn an income.
scams and types of scams
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charity scams, Scammer poses as a geniune charity and rakes advantage of a givers generosity
Phychic and clairvoyant scams, Victim may be told that they will be in some sort of trouble in the future they may hav to pay for something like a lucky charm, or be threatened by a curse if they don’t pay a fee to the scammer
romance scams ,The scammer takes advantage of someone looking for romance
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pyramid schemes
A hierarchical business setup where each paying participant recruits at least 2 more participants whos funds are used to pay earlier participants.
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