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Key Concepts of Economics, BEN, JORDAN, & SPENCER - Coggle Diagram
Key Concepts of Economics
Scarcity
Scarcity is when a resource is limited and desirable. Economics would not exist without Scarcity.
Choice
To select from a number of possibilities. Everyone faces choice in their daily lives.
Efficiency
Economic efficiency refers to the usage and allocation of each limited resource in an economy among producers and consumers in a way that maximizes economic production and benefits for consumers.
Equity
Equity in a sense, relates to the concept of fairness. It is not equality, in that equity refers to people with different circumstances being given sufficient opportunities to achieve fairness.
Economic well being
Economic well being relates to financial stability: including being able to fulfil human necessities, while also having ability to meet personal wants through the sustainment an adequate income.
Sustainability
Economic Sustainability is we must put away/sustain resources to extent the longevity of human and material resources. Resources would only be used optimally and when needed.
Change
The world is always in a state of economic change through markets, different forms of energy production and more. Economists must recognize this, track it and adapt their thinking to these changes. How variables change from one situation to another.
Interdependence
The collaboration and interaction between different economic actors. While analyzing the economy, it is vital for economic actors to practice interdependence.
Intervention
Economic intervention is when the government intervenes in markets when they fail to achieve societal goals including equity, economic well being and sustainability. In these situations the government will intervene with the markets.
BEN, JORDAN, & SPENCER
