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