Please enable JavaScript.
Coggle requires JavaScript to display documents.
Capitalism, economic growths: - Coggle Diagram
Capitalism
Revolution:
Specialization:
When a person or company dedicates more time, effort, material and supplies on producing something they are the best at instead of something they have a disadvantage with.
Absolute advantage: Absolute advantage is when two or more business sell the same service or product but the conditions of one of them gives them an advantage over the other ones.
Comparative advantage: Comparative adcvantage is when one business has an advantage but because of a situation they are in which gives the competition an advantage over them just because of this situations.
Technology:
Capitalism needs more than just a correct relationship between its three institutions that we studied to be dynamic and bring innovation with technological progress that translates into economic growth and improving the well-being of the population.
Technologies that helped firms and individuals be more productive and specialization that allowed individuals to focus on one activity and not all of them.
Difficulties:
The difficulty with specialization is that you will be depending more on others to produce the other goods that you need and you are not producing anymore. This is the moment when the division of labor happens.
-
The general and overall standard of living has improved but not at the same rate in every country and not for everybody. But it is not only because the income has increased that the standard of living might be higher because well-being is more than just money.*
It is important to take into account those differences and how resources are being distributed because we cannot forget the enormous inequality levels and the current threat that our environment faces.
Economic institutions:
FIRMS:
Labour market:
In economic language, the employers are the demand side of the labour market, the workers are the supply side, offering to work under the direction of the owners and managers who hire them.
Firms are the central part of the capitalist system because that is the place where production happens.
The inputs (capital goods, like buildings, equipment, patents) and outputs (goods and services produced) are owned by the owners, are private property. These firms are used to sell these goods and services to different customers to make a profit.
Private property:
Private property is an essential condition for the operation of markets: buyers will not want to pay for goods unless they can have the right to own them.
Private property means that you own things, you can use and dispose of them the way you want and exclude others.
Markets
Markets are a means of transferring goods or services from one person to another. They connect people with the interest of similar benefits by exchanging goods and services through a process of buying and selling.
It is important to understand that they are reciprocal and voluntary. Collaboration and competition is important.
Varieties of Capitalism:
Capitalism needs more than just a correct relationship between its three institutions that we studied to be dynamic and bring innovation with technological progress that translates into economic growth and improving the well-being of the population.:
Political conditions:
In addition to supporting the institutions of the capitalist economic system, the government provides essential goods and services such as physical infrastructure, education, and national defense. In short:
-
-
-
iv) help to keep a stable society, good environment, and resource base.
-
-
-