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