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Economics, image, image, image, image - Coggle Diagram
Economics
6 key concepts
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Economic performance and living standards- Countries measure their economic performance by how wel they can provide for people’s needs and wants. Governments attempt to manage the economy.
Making choices- Due to limited resources(time, energy and money) we have to make decisions
Every decision involves opportunity cost- cost of next best option
Allocation and markets- Every society has to make decisions about how these resources are allocated through an economic system.
Spécialisation and trade- Countries will spécialisé in types of product in order to have extra that they can trade for things they need. Might be more efficient or cost-effective.
Interdependence- Refers to how individuals, businesses and governments rely on each other to get what they need.
Economic Performance
Unemployment
Structural- This type of unemployment occurs if the way goods/services are produced changes, such as due to technology. The skills and training of those workers don’t match the current labour market. This also occurs when jobs are offshored.
Frictional- Frictional unemployment occurs when someone is looking for a new job, whether they quit or were fired.
Seasonal- This type of unemployment occurs when a job ends at a time of year, such as fruit pickers or tourism jobs, leading to low labour demand
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GDP- Gross domestic product is a monetary measure of the market value of all the final goods and services produced in a specific time period.
Inflation- Inflation refers to a general progressive increase in prices of goods and services in an economy.
Living Standards
Material- Refer to our access to physical goods and services. The car we drive, the house we live in and the food we eat are all examples of physical possessions that contribute to our material living standards.
Measured by GDP- Material living standards are measured by the total number of goods and services available. This is measured by gross domestic product (GDP).When you earn more money, you have more opportunity to purchase not only basic goods but things like cars, computers, and a nicer home.
Access to food, health care, cars, etc
Non-Material- Factors that affect a person's quality of life irrespective of income. Includes things such as: crime rates, public health facilities, pollution levels, stress levels, etc.
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Clean air, safety, freedom of speech,time off work,etc
Government Management
Budget
Taxes- is a compulsory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund government spending and various public expenditures. A failure to pay, along with evasion of or resistance to taxation, is punishable by law.
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Balanced
A budget is prepared for each level of government (from national to local) and takes into account public social security obligations. The government budget balance can be broken down into the primary balance and interest payments on accumulated government debt; the two together give the budget balance.
Defecit- Deficit spending is the amount by which spending exceeds revenue over a particular period of time, also called simply deficit, or budget deficit; the opposite of budget surplus.
Surplus- An amount of something left over when requirements have been met; an excess of production or supply.
Consumer Surplus- Is the monetary gain obtained by consumers because they are able to purchase a product for a price that is less than the highest price that they would be willing to pay.
Producer Surplus- is the amount that producers benefit by selling at a market price that is higher than the least that they would be willing to sell for; this is roughly equal to profit
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