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UNIT 1: FUNDAMENTALS OF ECONOMICS - Coggle Diagram
UNIT 1: FUNDAMENTALS OF ECONOMICS
1.1 Concept and Object of Study
Economics
Social science
Manages scarce resources
Satisfies human needs
Economic problem
Limited resources
Unlimited needs
What to produce?
How to produce?
For whom to produce?
Branches
Microeconomics
Macroeconomics
1.2 Scarcity, Needs and Resources
Scarcity
Limited resources
Requires choices
Needs
Basic
Secondary
Changing and unlimited
Resources
Natural
Human
Technological
Financial
Opportunity cost
Benefit lost when choosing another option
Objective
Use resources efficiently
1.3 Evolution of Economic Thought
Ancient times
Plato and Aristotle
Mercantilism
Trade
Protectionism
Classical economics
Adam Smith
Free market
Marxism
Karl Marx
Criticism of capitalism
Keynesian economics
John Maynard Keynes
State intervention
Modern thought
Different approaches
Behavior
Environment
Globalization
1.4 Microeconomics and Macroeconomics
Microeconomics
Individuals
Businesses
Supply and demand
Prices
Macroeconomics
National economy
GDP
Inflation
Unemployment
Economic growth
Relationship
Both study economics
They complement each other
1.5 Economic Systems
Primitive communism
Collective ownership
Slavery
Forced labor
Feudalism
Land and feudal lords
Capitalism
Private ownership
Free market
Competition
Socialism
State or collective ownership
Central planning
Mixed economy
Combines State and market