The economy and its sectors (2.The economic sectors (The primary sector…
The economy and its sectors
1. The economic system.
The economic circular flow
The economy is a system in which godos and services are produced,sold and bought.
The economic agents in the economic system are:
Households: they are the main consumers: they buy goods and services from businesses.They provide workers and earn wages to the businesses.They pay taxes to the state.
Businesses: they produce godos and services and sell them to households.They use the work they receive from households. In return, they pay wages to the workers.They pay taxes to the state.
The State: they receive the taxes.They create laws that regulate the economy.
The factors of production
They are the resources used to produce goods and services.
Land: the natural resources we get from natureto produce godos and services.
Labour:work by the people needed for the production of godos and services.The inconome earned by labour resources is called wages.
Capital:the man-made resources used to produce godos and services.
Capital godos:the machinery,computers...
Financial capital:the money invested.
Technological capital: the technological resources.
2.The economic sectors
The primary sector obtains raw materials.
The secondary sector turns raw materials into manufactured products.
The tertiary sector includes thebusiness that sell the products.
Suppliers,businesses and consumers.
Businesses by everything they need to suppliers (raw materials).
They make the product.
Finally, they sell the product to consumers in a market.
3.The primary sector
Raw materials are the natural resources we get directly from nature that we use to make other goods.peple who obtain these materials work in the primary sector.
Crop farming: get the fruit that produce the plants.
Livestock farming:raise cattle and other animals to get products.
Fishing: fishermen catchthe fish we eat in rivers,seas or oceans.
Mining:miners extract minerals and petrol.
Silviculture: silviculturalists use forests to get the products like wood.