Please enable JavaScript.
Coggle requires JavaScript to display documents.
Concept Map for IBDP Economics - Coggle Diagram
Concept Map for IBDP Economics
Economics = Social Science
Positive vs. Normative Thinking
Positive: Based on verifiable facts
Normative: Based on value judgments
Perspective
Recognizes the biases and viewpoints of individuals
Informs the interpretations of economic data and theories
Fundamental Economic Problem
Scarcity: Limited resources but unlimited wants
Decision-making: What to produce? How to produce? For whom to produce?
Macroeconomics vs. Microeconomics
Macroeconomics: Study of the whole economy, e.g., national income, inflation
Microeconomics: Study of individual consumers, firms, or markets
Resource Allocation
How scarce resources are distributed among producers
Influenced by the economic system in place
Economic System
Economic system
Market Economy: Determined by supply and demand (depict with a graph of intersecting curves)
Planned Economy: Determined by the government (depict with a government building or official)
Mixed Economy: Combination of both (depict with both graph and building
Private vs. Public Sector