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Economics IGCSE - Coggle Diagram

- - - - An increase in the quality of factors of production.
        
        More skilled labour
      - An increase in the quantity of factors of production
        
        New sources
      - This show that the production can be more without an opportunity cost
    - - Shift to the left
      - Things that destroy a percentage of the economy of a country
        
        War, natural disaster
  - - - Costs of prod
      - Profitability
      - Availability
      - Taxes
    - - Fashion and taste
      - Consumer income
      - Taxes
      - Price of complementary and substitute
- - - - .
        
        » Factors of production
        
        » Demand
        
        » Supply
        
        » Price elasticity of demand
        
        » Market failure
        
        » Economies and diseconomies of scale
        
        » Firms’ costs, revenues and objectives
        
        »Market structure
    - - .
        
        »An entrepreneur considering which type of business to start
        
        »A farmer deciding how best to allocate farmland to different crops or the rearing of farm animals
        
        »Firms investigating the prices being charged by their rivals in order to set their own prices
  - - - .
        
        »The role of government
        
        » Redistribution of income
        
        »Fiscal policy
        
        » Monetary pollicy
        
        »Supply-side policies
        
        » Economic growth
        
        » Employment and unemployment
        
        » Inflation and deflation
    - - »Government decisions regarding which products to tax, such as tobacco, alcohol and petrol
      - .
        
        »Government decisions to improve market efficiencies and the productive capacity of the economy, such as through education and training, labour market reforms, deregulation
- - - - The customers are tend to buy more when the price fall
      - The firms will produce more when the price increase
      - The place the two curves meet is the best price
        
        If it is more than the product is too expensive to the customers but very profitable to the firms
        
        Quantity of supply will be more than demand
        
        If is less the price, the product will be sell a lot but the firms will not produce as much as they can
        
        Supply will be less but demand will be higher
        
        Each of this cases are called market desequilibrium
  - - - The methods and process used
    - - Which economic agents receive this good, for everyone? or exclusive?
    - - Which good and service the economy should have
- - - - Decided the 3 questions
  - - - Expensive, more supply
      - Cheap, more demand
- - - - Lights are used for all people but a few pay it
      - Education is only for some people, but helps a lot the community
  - - - Charging higher prices or reduncing supply since they do not have competitors
      - This create inefficiencies in the market
  - - - Geographical
        
        Difficult to move one factor to another place
        
        Such as labour, since the family or cultural reasons
      - Occupational
        
        Difficult to move one factor from one role or work to another
        
        The machinery use
- - - - Loans
  - - - Can be fractional and have the same value
    - - All the coins of 10 are same size and appearence
    - - Must be limited to conserve their value
    - - Is easy to transport
  - - - The same value of two differents goods
- - - - Interest rate or money supply
    - - Uniformity and confidence
    - - The goverment accounts are in the central bank
      - Manages the public sector debt
        
        External value of nation currency
    - - All commercial banks must have their accounts with the central bank
      - Help the central bank to know the liquidity of the banks
    - - The national saves are in case of an emergency
      - If a bank is going to bankrupt the central bank can help
  - - - Loans with interest rate
    - - Tax advice or foreign exchange dealings
- - - - Main source, wages or salaries
      - Interest on savings
      - Profit from running a business
      - Rent earned from leasing property
      - Dividens
      - Disposable income
        
        Income after taxes and other charges
        
        Higher level of disposable income, more spending
        
        Direct taxation reduces the income
        
        Higher income tax rates, can lower the spending
    - - Spending
        
        Almost all in needs
      - Savings
        
        Tend to be low since they have less money
      - Borrowing
        
        Ask for credits for their capital items
        
        Banks do not often give loans to low income people since the risk is high
    - - Spending
        
        Lower proportion on needs and some luxuries
      - Savings
        
        Able to save some part of the salary or wages
      - Borrowing
        
        Borrow money to fund expenditure on capital items, use credit cards and take out mortages
  - - - Smallers part in needs, many luxuries
    - - Lot of money save, great part of their income
    - - No risk for banks and there is not a lot of loans
  - - - To spend money in goods to increase status or image
    - - The value of their loan is higher than their property
- - - - Value added tax
  - - - Since is the same for everybody so a high income person pay the same than a low
  - - - Fair, should be base on tax payers ability to pay
    - - Easy to pay
  - - - Moves the supply curve to the left since the cost are higher
      - This generate a higher price and a less spending
    - - Tend to reduce the production and spending
    - - Reduce it since the people spend less
    - - If it is high, discourage the business to locate there
    - - Reduce the consumption of demerit goods
    - - Generate legal problems
      - Decrease the consume since people do not buy if it has tax
    - - Redistribute the money among poor and rich people