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HUMAN NEEDS AND PRODUCTION - Coggle Diagram
HUMAN NEEDS AND PRODUCTION
Economy activity
distribution
Transporting goods from the producer to the consumer
consumption
Based on using the goods and services production
Production
The creation of good and services
Factors of production
Capital
Physical capital
raw materials, facilities,tool and machinery etc.
Financial capital
the money needed to pay for physical capital and human capital
human capital
the labour that workers contribute
Natural Resources
Renewable resources
Can be consumed without being exhausted, because they regenerate faster than they are consumed.
for example water and wind
Non-Renewable resources
They regenerate more slowly than they are consumed. their capacity to renew themselves is low.
For example oil,coal and iron
Purchasing Power
If a wage or salary goes up, but the prices of goods and services increase even more, purchasing decrease
Depends on the cost of living
Economy agents
businesses
Employ labour to produce goods and services
Meet needsof households and the goverment
Rceive money when the other two agents spend it
The goverment
Produce goods and service that benefit the general public, like schools
Collects taxes from households and businesses to pay for these services
Produces and uses goods and services
households
Meet their needs by using the goods and services offered by bussinesses and the goverment
The receive a financial remuneration
Suply lobour when they work for them
Labour
A wage or salary is the payment which employees receive for their labour
Using diffenret types of technology, tools and machines
The role of labour is to produce goods or provide services to receive finacial compesation
