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HUMAN NEEDS AND PRODUCTION - Coggle Diagram
HUMAN NEEDS AND PRODUCTION
ECONOMIC ACTIVITY
DISTRIBUTION
Transports goods from producers to consumers
CONSUMISION
Using goods and services produced
PRODUCTION
Creation of goods and services, for example fisherman
ECONOMIC AGENT
HOUSEHOLDS
Meet their needs by using the goods and services offered by businesses and the government
They receive a financial remuneration
Supply labour when they work for them
THE GOVERNMENT
Produces goods and services that benefit general public, like schools
Collect taxes from households and businesses to pay for these services
Such as healthcare products to give to public hospitals
BUSINESSES
Meet the needs of households and the government
Receive money when the other two agents spend it
Employ labour to produce goods and services
FACTORS OF PRODUCTION
NATURAL RESOURCES
NON-RENEWABLE RESOURCES
Their capacity to renew themselves is low
Regenerate more slowly than they are consumed
RENEWABLE RESOURCES
Can be consumed without being exhausted
They regenerate faster than they are consumed
Raw materials found in nature
CAPITAL
Is made up of different elements involved in the production process
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
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 which employees receive for their labour
PURCHASING POWER
Depends on the cost of living
Is the amount of goods or services that an amount of can buy
If a wage or salary goes up, but the prices of goods and services increase even more, purchasing power decreases