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The Nature of Economics - Coggle Diagram

- - - - Renewable:
        
        Solar, Tidal, Wind, Geothermal, Hydroelectricity and Biomass
        
        Rate of Production > Rate of Use
      - Non-Renewable:
        
        Petrol, Natural Gas, Coal, Minerals, Nuclear Power
        
        Rate of Use > Rate of Production
- - - - Advantages of Specialisation
      - Increased Productivity: Specialisation allows workers to become more skilled in specific tasks, leading to higher efficiency.
      - Economies of Scale: Larger quantities of identical goods can be produced more efficiently.
      - Lower Costs: Reduced training time and waste contribute to cost savings.
    - - Disadvantages of Specialisation
      - Monotony: Workers may find repetitive tasks monotonous, leading to job dissatisfaction.
      - Dependency: An economy heavily dependent on a single industry or export can be vulnerable to economic shocks.
- - - - Efficiency: Competition incentivizes firms to produce efficiently and innovate.
        
        Consumer Choice: Consumers have a wide range of choices in products and services.
        
        Economic Growth: Free markets can lead to rapid economic growth and higher living standards.
    - - Inequality: Income and wealth disparities can be significant.
        
        Lack of Public Goods: Some essential services may be underprovided without government intervention (e.g., public healthcare).
        
        Boom-Bust Cycles: Free markets can be prone to economic cycles of booms and busts.
  - - - Equality: Command economies aim to reduce income inequality through central planning.
        
        Stability: Central control can provide stability during crises.
        
        Prioritizing Social Goals: Resources can be directed toward public services and social welfare.
    - - Lack of Incentives: Central planning may discourage innovation and individual initiative.
        
        Resource Misallocation: Inefficient allocation of resources can lead to shortages or surpluses.
        
        Bureaucracy: Command economies often involve complex bureaucracies.