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HUMAN NEEDS AND PRODUCTION - Coggle Diagram
HUMAN NEEDS AND PRODUCTION
Factors of production
The resources involved in producing goods and services
Natural resources
raw materials found in nature
used in the consumption or manufacturing of products and energy sources
Can be regenerated in different ways
Renewable resources
regenerate faster than are consumed
consume without being exhausted
limitless
wind
air
some need a period of time for regenerate
fauna and flora
Non- renewuable
regenerate slowly that are consumed
they can runout
overconsume
oil, coal...
Labour
includes physical and intellectual labour
carried out using tools and machines
Role of labour
provide services and produce goods
finantial conpensation
wage/salary
determines the amount good they can purchase
Capital
made up by different elements
involved in productio process
3 types
Financial capital
money to pay
Physical capital
Human capital
Physical capital
machinery raw materials facilities tools
Human capital
labour that workers contribute
Economic activities
Distribution
Transporting goods
from farms to shops
from the producer to the consumer
Consumption
using goods and services produced
(households consumed food)
Production
Creation of goods and services
Produced by farmers
Economic agents
Businesses
Produces goods and services
Recived money when the others sent it
For metting households and governments needs
Government
Produces and uses goods and services
Collects taxes from businesses and households
For paying services
Benefits the general public
Households
Supply labor when work for them
They recived a finantial renumeration
spended to meet their needs