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Economics - Coggle Diagram
Economics
Factors of Production
Land
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Water Plants, Minerals, Animals, etc.
Labour
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Factory workers, farmers, lawyers, doctors, teachers, waiters, etc,
Capital
Physical capital
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Tools, tractors machinery, buildings, factories, etc.
Human captial
Definition: Any skills or knowledge gained by a worker through education, training, or experience
Entrepreneurship
Definition: The act of organizing and combining the other factors of production to create goods and services that people will want to buy in hopes of earning profit.
The efforts and talents of Steve Jobs, Jeff Bezos, and Jack Ma in founding Apple, Amazon and Alibaba, respectively
Equilibrium
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Price
Definition: Equilibrium price is the price that balances supply and demand. On a graph, it is the price at which the supply and demand curves intersect.
Quantity
Definition: Equilibrium quantity is a quantity that balances supply and demand. On the graph it is the quantity at which supply and demand curves intersect.
Types of Economies
Free Market (Capitalism)
Definition: Free Market is an economic system entirely governed by the laws of supply and demand, where the prices of goods and services, production, and resource allocation depend on free transactions between buyers and sellers, with minimal intervention from the government or any external institution.
Singapore, Switzerland, Hong Kong
Mixed Economies
Definition: Mixed economies are modern economies that combine economic protections and the free market with limited government intervention.
United States, China, Norway
Centrally Planned
Definition: A centrally planned economy is an economic system where a central authority—typically the government—makes all decisions regarding the production, pricing, and distribution of goods.
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3 Es
Economic Growth
Definition: Economic growth also comes from an increase in the quality and quantity of factors of production.
Efficiency
Definition: Efficiency refers to using resources in such a way to maximize the production or output of goods and services.
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Demand and Supply
Defintion: Demand is the different quantities of goods and services that consumers are willing and able to buy at different prices
Law of demand: The law of demand states that there is an inverse relationship between price and quantity demand
Defintion: Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different prices.
Law of Supply : There is a direct relationship between price and quantity supplied. - As price increases, the quantity producers make increases. As price falls, the quantity producers make falls.