Please enable JavaScript.

Coggle requires JavaScript to display documents.

ECONOMICS INTRO, DEFINITION, FOP = Factors Of Production GDP = Gross…

- - - - Consumption (Consumer)
      - Investment
      - Export & Import
- - - - OPPORTUNITY COST (2nd best choice)
        
        the one that being rejected from the choices
      - Consumers - Maximize satisfaction
      - Producers - Minimize cost & maximize profit
      - Government - Maximize society's welfare
- - - - Goods
      - Services
- - - - Low unemployment problems
      - Minimised of income inequality
      - Equal distribution income
    - - Consumers have no freedom to choice
      - Workers did not work hard cuz equality of income
      - Bad technology
      - Hard to estimate goods demand
  - - - Provides public goods at affordable prices
      - Economic activities more stable
      - Narrow gap between rich & poor
      - Minimized social cost
  - - - Wide disparity between rich & poor
      - Misallocation of resources
      - Human welfare is ignored
    - - Freedom of choice
      - The harder the worker, the harder they receive
      - Quality of goods & services
- - - - 1.Only 2 goods are produced
      - 2.Resources are fixed & limited
      - 3.Level of technology is fixed
      - 4.No waste of resources & unemployment
- - - - Innovation people who create products and get profits in return.
        
        Services (Non-Tangible)
        
        Transportation
        Education
        
        Goods (Tangible = can see & touch)
        
        Books
        Cars
    - - Man-made goods used to produce goods & services
      - Ex: machinery, tools & building & interest
    - - Salary
      - Energy mentally & physically
      - Limited skills
        
         Skilled
         Semi-skilled
         Unskilled
      - Human nature (live & die)
    - - Ex: timber, oil, coal, soil, water & rent