3rd Unit: Economic Geography
1. Economic Activities. The capitalist economy
Economy or Economc Acivity
Economic System
Capitalist Economy
Law of Supply and Demand
Economy: Definition
Economy Economic Activity
Economy: Definition
Economy: Definition
It is the way in which people use their
environment to meet their material needs. It
includes production, exchange, distribution,
and consumption of goods and services.
Economy: Definition
Different phases of the economic activity::
People have unlimmited needs that
must be satified.
Basic Needs: food, shelter and clothing
Other: sanitation, education and
healthcare.
UNLIMITED NEEDS VS LIMITED RESOURCES
PROBLEM
NOWADAYS, THE WORLD ECONOMY FACES
TWO BIG PROBLEMS …
…to garantee the basic needs of EVERYBODY…
…at the same time, to avoid finnishing our
planet’s limited resources.
Economic System
Economic System
Paleolithic economic system
Economic System
Which is our economic system?
CAPITALISM
Capitalist economy
Law of the supply and demand
Supply and demand is an economic model based on
price, utility and quantity in a market.
It concludes that in a competitive market, price will
function to equalize the quantity demanded by
consumers, and the quantity supplied by producers,
resulting in an economic equilibrium of price and
quantity.
Law of the supply and demand
LOTS SUPPLY FEW
(sellers)
Offer products
LOW FREE
FREE MARKET
MARKET HIGH
(Products
(Products price)
price)
Demand
products
DEMAND
FEW LOTS
(buyers)
Law of the supply and demand
Law of the supply and demand
Law of the supply and demand: EXCEPTIONS
2. Economic Agents
Definition and types
Private agents: Families
Private agents: Companies
Public agents: State
Economic Agents
Economic Agents
Economic Agents
Economic Agents: Families
Economic Agents: Families
Economic Agents: Families
Private Agents: Families
Private Agents: Families
Economic Agents: Companies
Companies
Produce goods and services
Aim: Maximun Profit
Companies: Types
• Individual
• Society
Companies: types
Companies: types
Companies: types
Companies: types
PUBLIC AGENTS: STATE
3. Factors of Production
Definition
Natural Resources
Work
Non Natural Resources
Tecnology
Factors of Production
What do we need
to build this?
Factors of Production: Definition
Factors of Production
is an economic phrase describing resources (inputs)
which are used to produce goods or services.
Factors of Production: Types
Factors of Production: land
Land represents what natural resources are
used in the production of goods
Factors of Production: land
Factors
Factors of
of Production:
Production: labor
labor
Labor refers to the work of laborers on all
levels of the business, other than the
entrepreneur
Factors
Factors of
of Production:
Production: labor
labor
Factors of Production: capital
Capital is defined as the machinery, tools,
and non-consumed items which are used in
the production of the goods
Factors of Production: capital
FACTORS OF PRODUCTION:
ENTREPRENEURSHIP
The entrepreneur is the one who makes use of the idea
in an attempt to profit by combining all of the aspects
of the factors of production.
The entrepreneur combines "land, labor, and capital"
with a particular idea or skill of his in order to run his
business and offer its particular goods or services.
4. LABOR MARKET
DEFINITION
TYPES
MAIN CHARACTERISTICS OF OUR LABOR
MARKET
LABOR MARKET: DEFINITION
Market: A market is any one of a variety of different systems, institutions,
procedures, social relations and infrastructures whereby persons trade, and
goods and services are exchanged, forming part of the economy.
Relation between the company and the worker is set by an
employment contract.
TIPOS DE MERCADOS LABORALES
Depending on the
Salary
MAIN CHARACTERISTICS OF OUR
LABOR MARKET
Service Economy
