The Economic Problem- The nature and purpose of Economic Activity

beth2384
Mind Map by beth2384, updated more than 1 year ago
beth2384
Created by beth2384 over 6 years ago
171
2

Description

A Levels Economics (Unit 1, 1 The Economic problem) Mind Map on The Economic Problem- The nature and purpose of Economic Activity, created by beth2384 on 10/20/2013.

Resource summary

The Economic Problem- The nature and purpose of Economic Activity
1 Central purpose of Economic Activity
1.1 production of GOODS and SERVICES to satisfy our needs and wants
1.1.1 If we can organise a system meeting needs and wants more efficiently then we could INCREASE ECONOMIC WELFARE
2 Questions and economic system attempts to solve
2.1 WHAT should we produce?
2.2 HOW should we produce it?
2.3 For WHO should it be produced?
3 Some (less obvious) examples of economic activity...
3.1 DIY
3.2 subsistence farming
3.2.1 producing and eating your own crops to live
3.3 barter
3.3.1 occurred in olden days: e.g. trading 2 chickens for a sheep
3.4 consumption of clean air
3.5 consumption of the natural environment for leisure and recreation
3.5.1 e.g. running around a field
4 What does production create?
4.1 CONSUMER GOODS
4.1.1 bought by PEOPLE for the purpose of FINAL CONSUMPTION, satisfying needs and wants
4.1.2 e.g. clothes, food, jewelery
4.1.3 CONSUMER DURABLE products are consumer goods with a long average life during which they deliver a 'stream' of consumer services, e.g. a washing machine
4.1.4 NON-DURABLE consumer goods include washing powder, it needs replacing after it has been used
4.2 CAPITAL GOODS
4.2.1 bought by FIRMS for the purpose of PRODUCTION (unmanufactured goods)
4.3 SERVICES
4.3.1 INTANGIBLE economic goods (can't be felt or seen)
4.3.2 Can be COMMERCIAL SERVICES (aka INDIRECT)
4.3.2.1 e.g. banking, insurance
4.3.2.2 through firms
4.3.3 Can be DIRECT SERVICES
4.3.3.1 e.g. hairdressing, teaching
4.3.3.2 straight to people
5 The Structure of Production
5.1 3 main sections-
5.1.1 PRIMARY SECTOR
5.1.1.1 SECONDARY SECTOR
5.1.1.1.1 TERITARY SECTOR
5.1.1.1.1.1 produces services e.g. transport, financial services and education
5.1.1.1.2 raw materials transformed or manufactured into goods
5.1.1.2 raw materials extracted, food is grown
Show full summary Hide full summary

Similar

Using GoConqr to study Economics
Sarah Egan
Economics
Emily Fenton
Economics - unit 1
Amardeep Kumar
AN ECONOMIC OVERVIEW OF IRELAND AND THE WORLD 2015/16
John O'Driscoll
Using GoConqr to teach Economics
Sarah Egan
Functions of Money
hannahcollins030
Comparative advantage
jamesofili
GCSE - Introduction to Economics
James Dodd
PMP Formulas
Krunk!
Market & Technology Dynamics
Tris Stindt
Economic Growth
Maya Khangura