Please enable JavaScript.
Coggle requires JavaScript to display documents.
Economics - Coggle Diagram
Economics
Key concepts
Specialisation and Trade
Specialisation refers to the way an individual, business, or entire country can focus on the production of a particular good or service in order to develop a more efficient and competitive production process.
-
Making Choices
in order to make good economic decisions we must consider our options. options include; financial choices (like how much money to save or spend), business decisions (what to produce/where to sell), employment decisions (what career to follow), and legal decisions (whether or not to take legal action over a faulty product).
Allocation and Markets
Allocation refers to the way we distribute our scarce resources among producers and consumers. the exchange of goods and services among buyers and sellers is referred to as a market.
-
-
Economic Growth
GDP
A measure of total value of all goods and services produced in Australia over a year. Economic growth is important because more goods and services and people being employed, and people are able to spend on a wider range of goods and services, it also improves living standards.
Unemployment Rate
Unemployment is when a person has no job or source of income and unemployment rate is the amount of people that are unemployed. The rate of unemployed is calculated by the number unemployed divided by the labour force and finally multiplied by 100 and the result is the unemployment rate of that country. The current unemployment rate for Australia is 4.6% which is in the generally acceptable range of unemployment. unemployment is a big issue for the nation because the more people without a job and without an income, the less people are buying meaning prices for things will go up because production will cost more because they sell less so they rise prices in reaction.
Inflation
inflation occurs when there is an increase in the general level of prides paid for goods and services over a certain period of time. Major factor causing rising prices is stronger demand in the economy for goods and services and the stronger demand can lead to shortages of goods and services therefore increasing prices.
-
Living Standards - the living standards of a population is measured in two ways: material and non-material living standards.
-
-
-
-