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Economics - Coggle Diagram
Economics
Factors of Production
Land
includes all natural resources—such as agricultural space, minerals, water and forests—used to create goods and services
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Characterized by a fixed supply, immobility, and high heterogeneity in quantity
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Ex. Agriculture: fertile soil, sunlight and water utilized to grow cops and raise live stock
Labour and Human effort
(both physical and mental), applied to produce goods and services. As a factor of production, it includes workers' time and skills, such as factory operator, teacher, or programmer
Physical Labor: construction worker, building a house or a chef cooking in a restaurant
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Capital, human made resources
(Including machinery, buildings, and tools) used to produce goods and services, increasing efficiency and productivity.
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Entepreneurship
The initiative, skill, and willingness to take risks by combining land, labor, and capital to create a new business or product. The goal is to innovate and earn a profit
Demand and Supply
Demand:
Law of Demand: The law of demand states that there is an inverse relationship between price and quantity demanded.
Demand is the different quantities of goods and services that consumers are willing and able to buy at different prices.
Supply
Supply is the different quantities of a good that sellers are willing and able to sell (produce) at different prices.
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