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THE ECONOMIC SYSTEM

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sociología
 Edad recomendada: 10 años
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Laura Currás
Laura Currás
España

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THE ECONOMIC SYSTEM

Review and learn content related to this topic.

Laura Currás
1

State agents services entrepreneur machinery goods economy

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 .

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