What is the economy?

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What is the economy? by Mind Map: What is the economy?

1. About This Book

1.1. Economy

1.2. AUTOR

1.2.1. MICHAEL PARKIN

2. Two fundamental questions describe the scope Of the economy:

2.1. How do elections determine what Goods and services are produced, how and for whom?

2.2. When are the choices that individuals make to meet their Personal interest Promote Also the Social interest?

3. Definition of Economy

3.1. All Economic questions arise of scarcity: from the fact that desires exceed The resources available to satisfy them. Economics is the social science that studies the choices people make to confront scarcity. This discipline is divided into microeconomics and macroeconomics.

4. What, how and for whom?

4.1. What to produce? Goods and services according to the needs.

4.2. How to produce? You Dare to produce factors: Land, Labor, capital, business skills

4.3. For whom? For people who have income

5. Production Factors

5.1. Land: The whole, the "gifts of nature" that are used to produce goods and services are called land. Work: The time and effort that dedicated people or the production of goods and services are called work

5.2. Capital The tools, instruments, machinery, buildings and other constructions used by companies to produce goods and services are called capital. Entrepreneurial Skills: The whole of the human resources that organize work, land and capital are called business skills.

5.3. People earn income by selling the services they have of production factors: ■ Land produces income. ■ Work produces wages. ■ The capital produces interest. ■ Business Skills Produce Utilities.

6. the graphics in the economy

6.1. A graph in economy is represented in a diagram and is analyzed from specific data of quantities or distances in a line and its relation with one or more variables represented in a graph. it is projected over time in order to analyze information quantitatively and qualitatively and be able to represent two or more variables and see their behavior in a positive or negative way and be able to draw conclusions from the information

6.2. - The variables move in the same direction. - The variables move in opposite directions. - The variables have a maximum and a minimum. - The variables are not related.

6.3. Relationship between two or more variables that show that both increase or decrease simultaneously.