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Human need and production - Coggle Diagram
Human need and production
Economic Activity
Distribution
Involves transporting goods from the producerto the consumer
Consumision
Based on using the goods and services
Production
The creation of goods and services, such as food made by a farmer
Factors of Production
Purchasing power
Depends of the cost of living
In the amount of goods or services that an amount of money can buy
If a wage or salary goes up, but the prices of goods and services increase even more, purchasing powerdecreases
Labour
The role of labour is to produce goods or provide services to receive financial compensation
A concept that includes both physical and intellectual labour
Using different types of technology, tools and machines
A wage or salary is the payment wich employees receive for their labour
Capital
Human Capital
The labour that workers contribute
Physical Capital
Raw materials, facilities, tools and machinery
Financial Capital
The money needed to pay for physical capital and human capital
Is made up of the differant elements involved in the production process
Natural Resources
Raw materials found in nature
Renewable resources
Can be consumed without being exhausted
They regenerate faster than they are consumed
Non-renewable resources
Regenerate more slowly than they are consumed
Their capacity to renew themselves is low
Economic Agents
The goverment
Produces and uses goods and services
Such as healthcare products to give to public hospitals
Produces goods and services that benefit the general public,like schools
Collects taxes from households and businesses to pay for these services
Households
Supply labour when they work for them
Meet their needs by using the goods and services offered by businesses and the goverment
They receive a financial renumeration
Businesses
Employ labour to produce goods and services
Meet the needs of households and the goverment
Receive money when the other two agents spendit