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BUSINESS AND ECONOMICS - Coggle Diagram
BUSINESS AND ECONOMICS
6 key concepts
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specialisation and trade - countries producing variety of goods and services required to support economy.
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economy
economy is the system for deciding how scarce resources are used so that goods and services can be produced and consumed.
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economic growth - more money in hand for government meaning more funding for infrastructure through taxes.
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inflation
Inflation - general increase in prices of goods and services. the prices of products increase due to the higher demand.
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stronger demand in the economy for goods and services. Companies unable to keep up with demand , so prices increase.
economic growth
If more goods and services being produced then more people are employed, more wages and spending can improve the living standards of people with money.
Gross domestic product
One way of measuring the performance of the economy is checking the gross domestic product {GDP}. This is a measure of the total value of all goods and services produced in Australia over a year , so if GDP increases we know that the economy is doing well.
Unemployment rate
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types of unemployment
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Hidden employment - when people aren't officially unemployed but would probably work if they had an opportunity
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Frictional unemployment - people moving between jobs in labour market, as well as when people move into and out of the labor force.