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Economics & Business - Coggle Diagram
Economics & Business
Key concepts
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Making choices-there are 4 different types of choice financial choices-how much to spend/save, business decisions where and what to sell, employment decisions- what career path to follow, legal decisions whether or not to take legal action over faulty product
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allocation and markets-allocation refers to the way we distribute our scarce resource among producers and consumers
specialisation and trade-specialisation refers to the way an individual, business, or entire country can focus on the production or a particular good and services in order to develop way more efficient or competitive production process
economic performances and living standards- economists measure how well and economy is doing (known as economic performance)using variety of methods the key indictors of economic performances include gross domestic product inflation the general increase in price of goods and services unemployment rate
living standards-material living standards refer to our physical goods and services.non-material living standards are harder to measure and include tings that may contribute to our happiness such as freedom, low crime rates, access to the facility, or free elections
Needs and Wants
needs- are things that you need to use to survive such as water, shelter, food, etc.
wants- are things that you heart desires such as designer bags, toys, etc.
factors that people have- age, income, gender, hobbies, where you live
Opportunity cost
value of the best/opportunity cost is the real or economic cost of a decision its the value of the best alternative that you give up
Markets
labour markets-its the market for workers sell their skills, effort, knowledge to employer and in return employers will pay workers for. there services
stock markets-its the market for the collection of markets and exchanges where regular activities of buying, selling, etc take place
housing markets-its the market for properties being purchased and sold directly to buyers or through real estate brokers
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Supply and demand
law of supply-the higher the price of a product, the higher the quantity that suppliers are more willing to produce goods and services if they can sell them for a higher price
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types of businesses
corporation
businesses that are considered seperate local entities to there owners they protect the owner(s) providing them with limited liability
partnership
formed when 2 or more people agree to run a business together what each partner is responsible for are often specified in a partnership agreement help share responsibility of running businesses
franchise
allows a person to the use of the names products and services of an existing business in return for franchise fees and a portion of the profits
sole traders
individuals who run their own businesses can employ other people to work for them sole traders are completely responsible for success or failure of business
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