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Human needs and production, . - Coggle Diagram
Human needs and production
Economic activities
To meet human materials needs trought
Production of goods
Production of services.
Main economic activities classified into 3 groups
Production:
Creation of goods and services.
Food produced by a farmer.
Distribution:
Involves transporting goods from the producer to the consumer.
Transportation of food from farms to shops.
Consumption:
Based on using the goods and services the produced
When a household consumes food.
Economic activities:
Businesses.
Employ labour to produce goods and services.
Meet needs of household and goverment.
Businesses receive money when the two agents spend it.
Goverment
Produces and uses this
Goods
Services.
Also produces goods and services that benefit general public.
Schools, for example.
Goverment, collect taxes.
From household and businesses to pay for the services.
Household.
Meet their needs using the goods and services
These are ofered by businesses and goverment.
Also supply labour when the work on them.
Exchange receive financial renumeration
Spend
Factors of production
Resources involved in producing goods and services.
Natural resources, capital and labour, for example.
Natural resources
.
Raw materials found in nature.
Used in:
Consumption
Manufacturing of products.
Energy resources.
Renewable resources
Consumed without bieng exausted
Regenerate faster than they are consumed.
Some almost limitless.
Water
Wind.
Others, need a period of time to regenerate.
Non-renewable resources.
Generate more slowly than they are consumed.
Capacity to renew themselves, is low.
Can run out if we overconsume them.
Examples:
Oil
Coal
Iron ore.
Capital
Made up of different elements involved production process
Physical capital.
Raw materials, facilities, tools, machinery,...
Financial capital.
Money needed to pay for physical capital and human capital.
Human capital.
Labour workers contribute.
Labour.
Concept that includes physical and intellectual labour.
Labour, carried, using different types of technology.
Rool, is to produce goods or provide services.
Receive financial compesation.
Machines.
Tools.
Wage/salary, payment which employees receive for labour.
.
