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economics - Coggle Diagram

- - - - Resources are limited, so we must make the best use of them
        Opportunity cost – the cost of the next-best alternative use of resources
  - - - Many countries around the world are unable to produce the variety of goods and services required to satisfy the needs and wants of their population
        
        Specialisation in an industry allows a country to become more efficient over time as productions increase and the country is able to take advantage of economies of scale
  - - - Non-material living standards are harder to measure and include things that may contribute to our happiness, such as freedom, low crime levels, access to facilities or free elections
      - Material living standards refer to our access to physical goods and services
      - Economists also measure living standards
      - By knowing our areas of strength and weakness, governments can develop policies to improve our economy and as a result, our standard of living :
- - - - Economic growth refers to an increase in the size of a country's economy over a period of time. The size of an economy is typically measured by the total production of goods and services in the economy, which is called gross domestic product (GDP). Economic growth can be measured in 'nominal' or 'real' terms.
    - - A depression is a more extreme economic downturn,
      - A recession is a decline in economic activity spread across the economy that lasts more than a few months.
    - - GDP is the gross domestic product of a country. It measures the total final market value of all goods and services produced within a country during a given period.
  - - - Structural
        
        -this type of unemployment occurs if the way goods/services are produced changed, 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.
        
        -Long lasting and harder to fix
        
        -Can be solved by training or relocating.
      - Frictional
        
        -frictional unemployment is when someone is looking for a new job whether they quit or were fired. It is sort term.
      - Seasonal
        
        -this type of unemployment occurs when a job ends at a time of the year, such as a fruit picker or tourist jobs, leading to low labour demand.
      - Cyclical
        
        -it is caused by economic downturn, i.e. slow or negative GDP growth, such as during the Great Depression. It s largely unavoidable; but temporary.
    - - Lower material and non-material living standard: poverty social isolation, family breakdown. Average wage of 1700$ pw vs 300$ pw. Unemployment benefit
        
        -Lowered GDP
        
        -Less tax revenue for the government and increased government spending
    - - young and the old
        
        -the less-educated
        
        -lower paid or unskilled jobs
        
        -groups who are discriminated against
        
        another issue
        
        ‘hidden unemployment’ where people are underemployed or have given up hope of finding a job
- - - - Every government has a budget to spend- the budget is the plan for the financial year. This impacts all citizens’ living standards
        
        Budget surplus: more money is going into the government than it is spending
        
        Budget deficit: the money the government makes is less than what It is spending
        
        Balanced budget: the money coming in and spent is roughly equal
    - - -Most commonly through taxes: direct taxes get money by taxing individual or company income (income tax, company tax, etc). Indirect taxes get money through the government taxing goods and services, or adding cost directly to items
- - - - our car
        
        -house
        
        -food
        
        This is measured by the quality of products and how available these goods and services are each year. GDP
      - freedom of speech
        
        -free elections
        
        -Low levels of crime and discrimination
        
        -preservation of the environment
        
        -adequate leisure time