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01 HUMAN NEEDS AND PRODUCTION - Coggle Diagram
01 HUMAN NEEDS AND PRODUCTION
ECONOMIS AGENTS
THE GOVERMENT
Produces and uses goods ad services
Such as healthcare products to give to public hospitals
Porduces goods and services tht benfit 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 remuneration
BUSINESSES
Employ labour to produce goods and services
Meet the needs og households and the goverment
Receive money when the other two agents spend it
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
CAPITAL
is made up of the different elements involved in the production process
HUMAS CAPITAL
The labour that workers contribute
PHYSICAL CAPITAL
Raw materials
FINANCIAL CAPITAL
The money needed to pay for physical capital and human caapital
FACTORS OF PRODUCTION
PURCHASING POWER
If a wage or salary goes up, but the prices of goods and services increase even more, purchasing power decreases
Is the amount of goods or services
Depends on the cost of living
LABOUR
The role of labour is to produce goods or provide services to receive financial compansation
A concept that includes both physical and intelectual labour
Using diferent types of technology
Awage or salary is the payment which employees receive for their labour
ECONOMIC ACTIVITY
PRODUCTION
The creation of goods and services
DISTRIBUTION
Involves transporting goods from the producer to thew consumer
CONSUMISION
based on using the goods and services produced