THE ECONOMIC SYSTEM

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Laura Currás

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Completar Frases THE ECONOMIC SYSTEMVersión en línea Review and learn content related to this topic. por Laura Currás 1 agents services goods entrepreneur State economy machinery THE ECONOMY CIRCULAR FLOW The is a system in which people buy and produced and sold by businesses . There are three economic : households , businesses and the state . Households buy goods and services from businesses and provide them with their work . They pay taxes . Businesses produce and sell goods and services . They pay wages to the workers and taxes to The State . The create laws to regulate the relationship between households and businesses as well as taxes . THE FACTORS OF PRODUCTION They are the resources used to produce goods and services . There are three types : land , labour and capital . Land resources are the ones found in nature . Examples : water , air , minerals , plants and animals . Labour resources are the people needed to develop the process of production of goods and services . The is the person who comes up with and idea for a business and brings the rest of the factor together . Capital resources are the man - made resources used to produce goods and services . Inside this category we can find : Capital goods : the , computers , tools , factories , etc . Financial capital : the money invested . Technological capital : the technological resources like the sofware or Internet sites .