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Human needs and production., Pantaila-argazkia (2), Pantaila-argazkia (3),…
Human needs and production.
Economic activity
Production
The creation of goods and services
such as food produced by a farmer.
Distribution
transporting goods
from the producer to the consumer
Consumption
using the goods and services
Economic Agents
Businesses
employ labour to produce goods and services.
They do this to meet the needs of households and the government
The goverment
produces and uses goods and services
It also produces goods and services that benefit the general public
The government collects taxes from households and businesses to pay for these services.
Households
meet their needs by using the goods
Households also supply labour when they work for them
In exchange, they receive a financial remuneration
Factors of production
are the resources involved in producing goods and services
NATURAL RESOURCES
Renewable resources
Can be consumed without being exhausted, because they regenerate faster than they are consumed
. Others need a period of time to regenerate
Non-renewable resouces
regenerate more slowly than they are consumed
Their capacity to renew themselves is low.
As a result, they can run out if we overconsume them
are raw materials found in nature
Capital and labour
Capital
Human capital
the labour that workers contribute.
Physical capital
raw materials, facilities, tools and machinery, etc.
Financial capital
the money needed to pay for physical capital and human capital.
is made up of the different elements involved in the production process.
Labour
is a concept that includes both physical and intellectual labour
role of labour
is to produce goods or provide services to receive financial compensation
age or salary is the payment which employees receive for their labour
