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HUMAN NEEDS AND PRODUCTION, image, image, image, image, image, image,…
HUMAN NEEDS AND PRODUCTION
Economic activity
production
creation of:
services
goods
distribution
transporting goods
consumption
using the goods and services
Economic agents
Businesses
employ labour to create
services
.
made to meet the needs of
households
goverment
goods
The goverment
central goverment
produce and uses goods
to:
public hospitals
schools
public sector firms
Households
meet their needs using
goods
offered by
goverment
business
services
supply labour when
they work for them
recieve a financial
remuneration
spent to meet their needs
factors of production
are the resources
involved in producing
services
.
natural resources
are raw materials
found in nature
Renewble resources
non-renobalbe resources
capital
human capital
the labour that workers contribute
financial capital
the money needed to pay for
physical capital and human capital
Physical capital
raw materials, facilities...
labour
includes both phisical
and intellectual labour
can be carried using
technology
tools
machines
the role is to
produce goods
financial compesation
wago or salary
goods
purchasing power
is the amount of
goods or services
that an amount
of money can buy
salary depends on
the cost of living
if a salary goes up
the goods even more
purchasing power decreases
