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HUMAN NEEDS AND PRODUCTION - Coggle Diagram
HUMAN NEEDS AND PRODUCTION
Economic activity
distribution
involves transporting goods
transportation of food from farms to shops
consumption
using the goods and services produced
when a household consumes food
production
goods and services
food produced by a farmer
Economic agents
businesses
employ labour
uses and produces goods and services
finance the government trough taxes and give financial remuneration to households
the government
employ labour
uses and produces goods and services
finance trough salaries, pensions, subventions…
households
uses goods and services
finance trough taxes (the government) and spending (businesses)
supply labour
Factors of productions
natural resources
renewable
others need time to regenerate (flora, fauna…)
some of them are almost limitless (water, wind…)
they regenerate faster than they are consumed
non-renewable
they regenerate slower than they are consumed
they can ran out if we overconsume(oil, coal…)
capital
human capital
workers
physical capital
raw materials, equipment, machinery…
financial capital
the money needed to pay human and physical capital
labour
it includes physical and intellectual labour.
its purpose is to produce goods or provide services to receive financial compensation.
a wage or salary is the payment which employees receive for their labour and determines the amount of goods they can buy
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