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The Nature of Economics - Coggle Diagram
The Nature of Economics
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Economic Statements
Positive Statement = A factual and objective statement. These can be tested, amended or rejected using available evidence.
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The Economic Problem
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Factors of Production:
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Labour - Those involved in the production of goods and services, physically and mentally
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Enterprise - The entrepreneur performs tow essential functions: Taking risks involved in production and bringing together other factors of production.
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Types of Economies:
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Command Economy:
In a command economy, the government or central authority makes all economic decisions.
Key figures: Karl Marx, who envisioned a classless society with centralised planning, and Friedrich Hayek, a critic of central planning who believed in free markets.
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