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01 Human needs and production, image, image, image, image, image, image,…
01 Human needs and production
Economic agents:
Busnisses
employ labour to:
produced goods and services
meet the needs of households and goverment
The Goverment
produces and uses goods and services
for public things
they collect taxes
Households
they meet their needs
using the goods and services
offered by businesses
offered by goverment
Economic activity
is to meet human matirial
throught the production of goods and services
Distribution
transporting goods and services
from the producer
for the consumer
Consumption
Is based on:
using the goods
using the services
Production:
creation of goods
creation of services
Needs on economic:
primary needs
food, hause...
secondary needs
phone...
Factors of production
Natural resouses
they are from nature
non-renewable resources
they can't be used more than 1 time
oil...
coal...
renewable resources
can be used more than 1 time
water
wind...
Capital
Capital is formed by the production process.
Human capital
workers
Physical capital
raw materials, facilities, tools and machinery, etc.
Financial capital
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
