1. ECONOMIC SECTORS
1.1. Primary sector
1.1.1. Producction of raw materials
1.1.1.1. Agriculture, silvestock farming, fishing, silviculture (forestry) and minery
1.2. Secondary sector
1.2.1. Transform raw materials through industrial processes into manufactured products
1.2.1.1. Industry, construction, explotation of energy sources
1.3. Tertiary sector
1.3.1. Produces services to the population or companies
1.3.1.1. Healthcare, education, transport, tourism, trade, culture
2. ECONOMIC SYSTEMS
2.1. THE SUBSISTENCE SYSTEM
2.1.1. Societies with low levels of development.
2.1.1.1. People work to produce their basic needs (houses, food, clothes). Extra goods are sold.
2.2. CAPITALIST SYSTEM
2.2.1. Defends free competition between individuals and companies. FREE MARKET SYSTEM
2.2.1.1. Bases on the law of supply and demaind fair prices for goods and services. Means of production are privately owned
2.3. PLANNED ECONOMY SYSTEM
2.3.1. The State owns the means of production and controlls all aspects of economy
2.3.1.1. The State decides what and how much is produced. This system was used in near the whole world at the 20th century but nowadays only China, North Korea and Cuba follow it.
3. FACTORS AFFECTING PRODUCTION
3.1. NATURAL RESOURCES AND RAW MATERIALS
3.1.1. Nature gives us elements that we transform to satisfy the needs os human society
3.1.1.1. These elements are called natural resources (water, minerals...). They are limited and we can't overexplote them.
3.2. LABOUR
3.2.1. Is all HUMAN ACTIVITY (physical/intellectual) that is required to produce goods or services that are necessary for people.
3.2.1.1. Human intervention is necessary at jobs that technology can't do (economic activity)
3.3. CAPITAL
3.3.1. Includes all of the resources used to produce goods and services
3.3.1.1. PHYSICAL CAPITAL: Land on which the business is built, the construction and machinery and raw materials needed for the production of goods.
3.3.1.2. FINANCIAL CAPITAL: Money needed to begin production (banks, other institutions)
3.4. THECNOLOGY AND EXPERTISE
3.4.1. Thecnical expertise makes possible the design, construction and use of machines for producction of goods and services
3.4.1.1. Manual production, mechanical production, high-tech production
3.4.1.2. Competitive companies require QUALITY TRAINING PROGRAMMES for theis employees and also laboratories tho create new products