01 Human needs and production

Economic agents:

Economic activity

Factors of production

Capital

is to meet human matirial

throught the production of goods and services

Distribution

Consumption

Production:

creation of goods

creation of services

transporting goods and services

from the producer

for the consumer

Is based on:

using the goods

using the services

Needs on economic:

primary needs

secondary needs

food, hause...

phone...

Busnisses

The Goverment

Households

they meet their needs

using the goods and services

offered by businesses

offered by goverment

employ labour to:

produced goods and services

meet the needs of households and goverment

produces and uses goods and services

they collect taxes

for public things

Natural resouses

they are from nature

non-renewable resources

renewable resources

can be used more than 1 time

they can't be used more than 1 time

oil...

coal...

water

wind...

Capital is formed by the production process.

Human capital

Physical capital

Financial capital

workers

raw materials, facilities, tools and machinery, etc.

the money needed to pay for physical capital and human capital.

Labour

the function are:

produce goods for economic compensation.

provide services for economic compensation.

Purchasing power

the amount of goods or services that one amount of money can buy

Purchasing power depends on the cost of living

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