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1-HUMAN NEEDS AND PRODUCTION, image, image, image, image, image, image,…
1-HUMAN NEEDS AND PRODUCTION
3 MAIN ECONOMIC ACTIVITIES
DISTRIBUTION
Transporting goods from the producer to the consumer
CONSUMPTION
Using the goods or services produced
PRODUCTION
Creation of goods and services
ECONOMIC AGENTS
3 MAIN ECONOMIC AGENTS
BUSINESSES
employ labour to produce goods and services
Receive money from the other two agents
THE GOVERMENT
Collects taxes to pay public services
HOUSEHOLDS
Meet their needs by using the goods and services offered by businesses and the goverment
FACTORS OF PRODUCTION
NATURAL RESOUCES (Raw materials found in nature)
RENEWABLE SOURCES
Can be consumed without being exhausted
They regenerate faster than they are consumed
NON-RENOWABLE SOURCES
Regenerate slower than they are conosumed
CAPITAL
PHYSICAL CAPITAL
Raw materials, facilities, tools and machinery
FINANCIAL CAPITAL
The money needed to pay for physical and human capital
HUMAN CAPITAL
The labour that workers contribute
LABOUR
