What is Economic Activity? Aims at the meeting human needs with the obtaining and distribution of resources of different types:
There are 3 diferent types
*Production of goodsand services
*Consumption
*Exchange
Example of Economic activity in Ecuador is COFFEE The organisation of economic activity
The economic system is the set of rules which characterises the economy of a society, The so-called market economy system, also known as Capitalist System.
*Divided into
-Private property: Of lands and companies.
-Search for profit: The motor of economic activity.
*There are other factors which also have effect on prices as MONOPOLY
*History of the forms of payment
1)Barter:Direct eschange of goods
2)Natural Coins:Varuable natural items
3)Metal Coins:They were adopted by the Greeks
4)Paper Money:It first appera in China
5)Bills of exchange and cheque
6)Plastic and electronic Money
*Economic Agents
Are all those people on entities taking part in economy, they produce goods,distributes them and consume them.
-There are two:
*Private Agents: household and companies
-Household:They consume goods and services, they suply companies with their resources.
-Companies:Basically production units because their main functions is to produce and supply goods and services
.Number of Workers .Legal Nature
.Activity
Public Agents: Can be international, national, regional or local.
*The state draws up the laws regulating economic activity
*Collects taxes, consumes goods and services, create companies.
*Production Factors
-Land: Group of natural resources utilised in the production process
*water
*air
*plants
*animals
-Labour:Refers to human activity, both physical and intellectual*employers
*salary
*Work contract
-Capital: Is the resources used to produce goods an services
*There are three types:-Physical
-Human Capital
-Financial Capital
-Technology:Is the group of procedures taken to produce goods and services.-Manual Production
-Mechanised Production
-Technical Production
*Economic Sectors
-The Primary Sector: Based on the extraction of goods and resources from th enviroment
-The Tertiary Sector:Include activities which includes provides services af all kind
*trade
*transport
*health*Pictionary
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