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Key Concepts of Economics - Coggle Diagram
Key Concepts of Economics
Scarcity
Limited availability of resources relative to unlimited wants
Choice
Not all wants can be satisfied, so choice have to be made considering the opportunity cost
Efficiency
Ratio of useful output to total input
Equity
Fairness - distribution of income, economic opportunity for all
Economic well being
Level of prosperity and security in an economy
Sustainability
Ability of present generation to meet its needs without compromising future generations
Interdependence
Interaction between different parts of the economy create chains of dependence
Change
Economists must constant adapt to societal and variable changes
Intervention
Government involvement in markets to achieve certain goals
