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Economics, image, image, image, image, image, image - Coggle Diagram
Economics
Key concepts
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Making choices - due to limited resources, we must make decisions aka the economic problem
- Every decision involves an opportunity cost, the cost of the next best option
Interdependence - how individuals, business and governments rely on each other to get what they need
Specialisation and trade - countries will specialise in types of products in order to have extra that they can trade for tings they need. This is because it might be more effective or more cost-effective
Allocation and markets - every society must make decisions about how these resources are allocated through an economic system
Economic performance and living standards - countries measure their economic performance by how well they can provide for people's needs and wants. Governments attempt to manage the economy
Unemployment
Definition - occurs when someone is available and actively looking for work, but doesn't have a paid job
Measured - by the unemployment rate, which is the share of people in the labour force who are unemployed x100
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Who is at risk
- Young and old
- Less-educated
- Lower-paid or unskilled jobs
Types:
- Structural - unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand
- Frictional - unemployment in the economy due to people being in the process of moving from one job to another
- Seasonal - occurs when people are unemployed at particular times of the year when demand for labour is lower than usual
- Cyclical - occurs with changes in economic activity over the business cycle
Economic Performance
GDP rate growth - compares the year-over-year change in a country's economic output to measure how fast an economy is growing
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