1-HUMAN NEEDS AND PRODUCTION

3 MAIN ECONOMIC ACTIVITIES

DISTRIBUTION

CONSUMPTION

PRODUCTION

Creation of goods and services

Transporting goods from the producer to the consumer

Using the goods or services produced

ECONOMIC AGENTS

3 MAIN ECONOMIC AGENTS

BUSINESSES

THE GOVERMENT

HOUSEHOLDS

Meet their needs by using the goods and services offered by businesses and the goverment

employ labour to produce goods and services

Receive money from the other two agents

Collects taxes to pay public services

FACTORS OF PRODUCTION

NATURAL RESOUCES (Raw materials found in nature)

CAPITAL

RENEWABLE SOURCES

Can be consumed without being exhausted

They regenerate faster than they are consumed

NON-RENOWABLE SOURCES

Regenerate slower than they are conosumed

PHYSICAL CAPITAL

FINANCIAL CAPITAL

HUMAN CAPITAL

The labour that workers contribute

Raw materials, facilities, tools and machinery

The money needed to pay for physical and human capital

LABOUR

image

image

image

image

image

image

image

image

image

image

image