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Mind-Mapping the Key Concepts of Economics - Coggle Diagram
Mind-Mapping the Key Concepts of Economics
Scarcity
Limited resources in the world as opposed to human's infinite needs - creates
scarcity
Choice
Because resources are scarce, people must choose which needs/wants they should satisfy. This also relates to
opportunity cost
; there is always a need/want to be sacrificed when making a
choice.
Efficency
Ratio of total input to useful output. More
efficiency
= less resources wasted
Equity
How can we distribute resources in a fair way that promotes
equity
? Equity refers to an even distribution of income, wealth and economic opportunities to all. Economic inequity is still a prominent issue in many societies today.
Economic well-being
Way of measuring the prosperity of members in an economy: those who are "economic-well off" have financial security, can meet basic needs, the ability to make financial choices pertaining to personal satisfaction, and the ability to maintain their income.
Sustainability
The ability to meet the needs/want of the current generation without sacrificing the ability of future generations to meet their needs. Much of this stems to environmental
sustainability.
Change
The economic world is based on human behaviour, which changes due to various factors. Hence, the economic world is also always experiencing
change
, and economists must adapt their ways of thinking accordingly
Interdependence
Interdependence
refers to how business, nations and individuals around the world are interdependent on each other to a certain degree. The more economic interaction there is between groups or individuals, the more interdependence is created.
Intervention
Intervention
refers to when government involvement in the workings of microeconomics and smaller markets. There is often disagreement amongst economists on how much government involvement there should be.
