HUMAN NEEDS AND PRODUCTION

ECONOMIC ACTIVITY

PURPOSE

To meet human material needs through the production of goods and services.

Main economic activities:

DISTRIBUTION

CONSUMPTION

PRODUCTION

creation

transporting

using

ECONOMIC AGENTS

Main economic agents:

BUSINESSES

GOVERNMENT

HOUSEHOLDS

use

Also supply labour when they work

services

goods

In exchange, they receive a financial remuneration

produce

goods

services

produces and uses

collect taxes

FACTORS OF PRODUCTION

raw materials found in nature

RENEWABLE RESOURCES

NON-RENEWABLE RESOURCES

regenerate faster than they are consumed

regenerate more slowly than they are consumed