Economic a

Apuntes

Economic activity consists on satisfying human need through goods and services, often making a profit. Goods are tangible products (ex. a computer). Services are activities that do not produce material goods (ex. teaching). Stages of economic activity The quantity of goods produced is the supply. Taking the good to the consumers. The demand for a good or service is the quantity of it people are willing to pay. Production Distribution Consumption Consumption is the engine of the economy. Indicators to measure the value of goods and services: -Gross domestic product (GDP) measures the total wealth of a territory (goods + services). -GDP per capita is calculated dividing the GDP by the number of inhabitants of the territory. It shows the average wealth of the population. The activities are grouped into sectors The primary sector The secondary sector The tertiary sector Agriculture, livestock farming, forestry… Industry, construction, energy… Services. Economic activities are carried out by three main agents: -The state: Makes economic policies and keeps everything running smoothly. It’s goal is to create economic stability and growth. It also provides public jobs (for social welfare, ...