Unit 1 Economics mindmap
A mindmap of unit 1 AQA Economics
- Created by: Taylor Johnson
- Created on: 12-05-13 16:30
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- Unit 1 Economics
- Demand
- Types
- Derived
- A good demanded as a result of another good being demanded
- Joint
- Complement goods
- Composite
- A good used for more than once distinct use
- Derived
- Determinants
- Advertising
- Income
- Price of other goods and services
- Tastes
- Income elasticity
- %Change in QD divided by % Change in Income
- How much of change in demand there is to a change in income
- Price elasticity
- Determinants
- Substitutes
- Luxury/ necessity
- Income
- Time
- %Change in QD divided by % Change in price
- Determinants
- Types
- Supply
- Determinants
- Cost of production
- Price of other goods and services
- Technology
- Taxes and subsidies
- Price elasticity
- Formula
- % Change in Quantity divided by % Change in Price
- Determinants
- Stock piling
- Spare capacity
- Production methods
- Time
- Formula
- Determinants
- Government intervention
- Regulation
- Used against private goods to reduce the consumption of demerit goods
- Subsidiesed provision
- Firms producing merit goods being subsidised by the government
- Direct provision
- Government providing a merit good directly to the consumer, free of charge
- Regulation
- Externalities
- Negative
- Demerit Goods
- Overproduced in the free market
- Overconsumed in the free market
- Social cost more than private cost
- Private benefits is more than social benefits
- Demerit Goods
- Positive
- Merit Goods
- Underproduced in free market economy
- Underconsumed in the free market
- Private costs are more than Social costs
- Social benefits is more than Private benefits
- Merit Goods
- Negative
- Types of goods
- Inferior
- Demand decreases when income increases
- Normal/ economic
- A good with scarce resources and a opportunity cost
- Free
- A good which has unlimited resources
- There is no opportunity cost
- Public
- A good not produced at all in the free market
- Non-rivalry and non excludability
- Merit
- Positive externalities
- Underproduced and under consumed in free market
- Demerit
- Negative externalitites
- Overproduced and overconsumed in the free market
- Inferior
- Monopolies
- Natural
- Extremely large economies of scale
- Being truly efficient so extremely high barriers of entry
- One firm supplies all output in the economy
- High barriers to entry
- Government intervention
- Breaking up the monopoly
- Reduce barriers of entry
- Price control
- Natural
- Taxes
- VAT
- Value Added Tax
- Levied on a proportion of the good
- Excise duties
- Specific tax which doesn't change with price
- VAT
- Market failure
- When goods are over or under produced or consumed
- Causing excess demand or supply
- Complete
- When a free market fails to provide a good at all
- Public goods
- When a free market fails to provide a good at all
- When goods are over or under produced or consumed
- Economies of scale
- When a firm expands and/or increases efficiency and/or revenue
- Diseconomies of scale
- When a firm expands too much and gets inneficient
- Loss of communication
- Lack of co-ordination
- Demand
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