The document discusses key concepts in economics and economic activity. It defines economy as how a society shares resources and produces, distributes, and consumes goods and services. Economics is defined as the science studying this process. It also discusses microeconomics focusing on individuals and households, and macroeconomics focusing on larger autonomous communities. Other topics covered include economic goods, factors of production, economic agents, economic sectors, and different economic systems like subsistence, planned, and market economies.

1. ECONOMY AND
ECONOMIC ACTIVITY
María Jesús Campos Fernández.
learningfromgeography.wikispaces.com

2. Economy and Economics
 Economy: How a society`s resources are shared, the way in which
goods and services are produced, distributed and consumed.
 Economics: Science that studies how a society`s resources are
shared, the way in which goods and services are produced,
distributed and consumed.
 It comes from the Ancient Greek “oikos” which means household,
and “nomos” which means rule.

3.  Economics studies
how people and
societies make
decisions in order to
obtain goods and
resources.
 This decisions are
necessary because
resources are limited
and sometimes even
scarce.
Supply
Demand

4.  The Classical
economic analysis
assumes that if demand
increases faster than
supply, the prices will
rise and the firms will
respond by increasing
the supply.
 Currently, economists
have created a branch
called macroeconomics
as they find out that
when economy affects
states or even
continents it is not only
affected by the supply
and demand law.

5.  Microeconomics:
focuses on the
economy of
individuals,
households, small
shops…
 Macroeconomics:
focuses on the
economy of an
autonomous
community, state, a
continent…

6. Econom
ic
Activity
Economic
Goods
Products
Services
Factors of
Production
Natural
Resource
s
Human
Resources
Capital
Economic
Agents
People and
Families
Companie
s
The State
Economic
Sectors
Primary Sector
Secondary Sector
Tertiary Sector

7. Economic Goods
 Products are things we can buy that we can use
or touch (clothes, car, machinery, computers…)
 Services are things we buy that we can not touch,
is something that someone does for us (a haircut,
assistance from a doctor, teach you geography…)
Economic
Goods
Composition
Consumable
Capital
goods
Function
Intermediate Finished
Ownership
Private Public

8. Factors of Production

10. Economic Agents

12. The Economic Sectors

18. Subsistence
Economy
Self-
consumptio
n
Little
mechanisation
Less
developed
countries
Communist or
Planned Economy
Planned by the
State (collective
benefit)
Centralised
The State owns
the means of
production and
the production
Capitalist or Market
System
Law of supply and
demand
Private property
means of
production
Freedom to
work and hire
Little State
intervention
The Economic Systems in the
World

20. Developed by María Jesús Campos
learningfromgeography.wikispaces.com
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