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

Consumption

Production

creation of goods and services

Involves transporting goods from the producer to the consumer

is based on using the goods and services produced

ECONOMIC AGENTS

Main economic agents

Businesses

The goverment

Households

How many people live in yor house

Employ labour to produce goods and services.

Produces and uses goods and services

FACTORS OF PRODUCTION

The resources involved
in producing goods and services

Natural Resources

Capital

Labour

Renewable Resources

Non-Renewable Resources

oil, coal and iron ore

water and wind

Physical Capital

Financial Capital

Human Capital

A concept that includes both physical and intellectual labour

Purchasing Power

Amount of goods or services that an amount of money can buy.

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