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HUMAN NEEDS AND PRODUCTION - Coggle Diagram
HUMAN NEEDS AND PRODUCTION
The purpose of economic activity is to meet human material needs through the production of goods and services.
Main economic activities
Distribution
Involves transporting goods from the producer to the consumer
Consumption
is based on using the goods and services produced
Production
creation of goods and services
ECONOMIC AGENTS
Main economic agents
Businesses
Employ labour to produce goods and services.
The goverment
Produces and uses goods and services
Households
How many people live in yor house
FACTORS OF PRODUCTION
The resources involved
in producing goods and services
Natural Resources
Renewable Resources
water and wind
Non-Renewable Resources
oil, coal and iron ore
Capital
Physical Capital
Financial Capital
Human Capital
Labour
A concept that includes both physical and intellectual labour
Purchasing Power
Amount of goods or services that an amount of money can buy.
