Notes on economics systems.

Economics Notes

Economic Systems - Mind Map

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

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• Planned Economies
  
  • National production is planned
  • Prices fixed by the state
  • Targets set by state for production
  • Fixed by the state
  • Unemployment and Inflation - zero!
  • Priorities can be decided
  • Social goals may be targeted
  • Narrow income distribution
  • Potential for waste and inefficiency
• Mixed Economies
  
  • Public sector
  • Private sector
• Market Economies
  
  • Markets
    
    • Demand
    • Supply
    • Price
  • Profit Motive
  • Price Signals
    
    • Accurate reflection of cost
    • Accurate reflection of benefits
    • Consumers - value/satisfaction
    • Producers - profit levels/worth producing?
  • Importance of good information
  • Ease of resource movement
  • Dynamic system
  • Market Failure
    
    • Public goods
    • Merit goods
    • Income inequalities
    • Shortages and surpluses - imperfect information
    • Externalities
      
      • Positive
      • Negative
• Economic Problem
  
  • How are scarce resources allocated between competing uses?
  • What is to be produced?
  • How is it to be produced?
  • Who will get what is produced?

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