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HUMAN NEEDS AND PRODUCTION - Coggle Diagram
HUMAN NEEDS AND PRODUCTION
Economic activity
Distribution
Transportation of food from farms to shops
Consumption
Using goods and services
Production
Goods
Services
Economic agents
Businesses
Businesses receive money when the agents spend it
employ labour to produce goods and services
The goverment
Benefit the general public
They collect taxes
Produces and uses goods and services
Pay for services
Households
Supply labour when they work for them
they receive a financial renumeration
they use goods and services from the government
they spend to meet their needs
Factors of production
Capital
Human capital
workers contribute
Physical capital
facilities
tools
machinery
raw materials
financial capital
money needed to pay for physical capital and human capital
Labour
can be carried out using different types of technology, tools and machines
role of labour is to produce goods or provide services to receive financial compensation
wage or salary is the payment which employees receive for their labour
amount of goods they can purchase
includes both physical and intellectual labour
Natural resources
Renewable resources
they regenerate faster than they are consumed
can be almost limitless
water
wind
Can be consumed without being exhausted
need a period of time to regenerate
flora
fauna
Non-renewable resources
capacity to renew themselves is low
they can run out if we overconsume them
coal
iron
oil
regenerate more slowly than they are consumed
Purchasing power
is the amount of goods or services that an amount of money can buy
depends on the cost of living