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.