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ECONOMIC ACTIVITY, capital, work, livestock, money, secotrs, economy, g7,…
ECONOMIC ACTIVITY
1. HUMANS NEED AND PRODUCTIONS
Economic activities: meet human material needs -> production of goods and services
Distribution: transport goods. The producer -> the consumer.
Consumption: use the goods and services produced.
Production: creation of goods and services.
1.1 ECONOMIC AGENTS
Businesses: employ labour to produce goods and services.
The government: produces and uses goods and services
Households: good and services offered by businesses and the government
1.2 FACTORS OF PRODUCTION
Natural resources: raw materials, used: in consumption, manufactoring and as energy resources.
Renewable resources: products that can be exhausted -> regenerate
Non-renewable resources: regenerate more slowly than they are consumed
Capital
Physical capital: raw materials, machinery...
Financial capital: money payed for: Human and Physical capital
Human capital: labours that workers contribute
Labour: physical or intellectual. The employer receive salary. Carried with machines, tools, technology...
Are the resources involved, producing: goods and services.
Purchasing power
2. ECONOMIC SISTEMS
2.1 TRADITIONS-BASED ECONOMIC SYSTEMS
People developed economic systems based: laws
At the present productions is changing because of technology
At the past lifestock farming was the main economic activity
Market: procedures and rules that govern commercial exchange
2.2 CAPITALISM AND THE FREE MARKET SYSTEM
Capitalism: socieconomic system
Investment of capital
Invest in economic activity -> to maximise potential profits
Free market
Regulates the production and the sale of products
Private ownership
Physical and financial capital
Demand
Products that consumers want to buy
Prices decrease
Supply high -> Demand low
Supply
Products on the market for a specific price
Prices increase
Supply low -> Demand high
2.3 AUTHORITY: THE CENTRAL PLANNING SYSTEM
The authority make decisions about supply and demand
Social-equality -> prevent the injustices caused by the unequal distribution of wealth
2.4 THE MIXED ECONOMIC SYSTEMS
Most countries -> mixed economic systems
Free market -> basic economic problems, but the state acts as an authority
3. SECTORS OF THE ECONOMY
Secondary sector: manufactor raw materials, produce capital goods. Transport...
Tertiary sector: activities that produce goods and services. Education, health...
Primary sector: Obtain natural resources from raw materials.
7. THE WORLD OF GLOBALISATION
1. COUNTRIES AND LEVELS OF DEVELOPMENT
7.2 DEVELOPING COUNTRIES
Low GDP per person, tend to rely on agriculture, very low economy.
7.3 EMERGING COUNTRIES
Don't reached the standards of developed countries, high rates of economic growth.
Different indicators to classify: HDP, GDP...
7.1 DEVELOPED COUNTRIES
Has a sophisticated economy, measured by GDP. Advanced technology, diverse service sectors.
2. INTERNATIONAL DECISION-MAKING BODIES
7.3 REGIONAL ORGANISATIONS
Countries take part in international organisations, working together.
7.4 IMFORMAL FORUMS
G7 is made of 7 most economically and military powerfull countries.
BRICS is a group of countries with emerging economies
