2. Economy: Definition Economy Economic Activity

3. Economy: Definition

4. It i s 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

5. Different phases of the economic activity : Economy: Definition

6. People have unlimmited needs that must be satified. Basic Needs: food, shelter and clothing Other: sanitation, education and healthcare.

7. NOWADAYS, THE WORLD ECONOMY FACES TWO BIG PROBLEMS … PROBLEM UNLIMITED NEEDS LIMITED RESOURCES VS

8. … to garantee the basic needs of EVERYBODY…

9. … at the same time, to avoid finnishing our planet’s limited resources.

10. Economic System

11. Economic System Paleolithic economic system

12. Economic System Which is our economic system? CAPITALISM

13. Capitalist economy

14. 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

15. FREE MARKET (Products price) Offer products Demand products Law of the supply and demand SUPPLY (sellers) DEMAND (buyers) LOW HIGH LOTS LOTS FEW FEW

16. Law of the supply and demand

17. Law of the supply and demand

18. Law of the supply and demand: EXCEPTIONS

20. Economic Agents Economic Agents

21. Economic Agents

22. Economic Agents: Families

23. Economic Agents: Families

24. Economic Agents: Families

25. Private Agents: Families

26. Private Agents: Families

27. Produce goods and services Companies Aim: Maximun Profit Economic Agents: Companies

29. Companies: types

30. Companies: types

31. Companies: types

32. Companies: types

33. PUBLIC AGENTS: STATE

35. What do we need to build this? Factors of Production

36. Factors of Production : Definition Factors of Production is an economic phrase describing resources (inputs) which are used to produce goods or services.

37. Factors of Production : Types

38. Factors of Production : land Land represents what natural resources are used in the production of goods

39. Factors of Production : land

40. Factors of Production: labor Labor refers to the work of laborers on all levels of the business, other than the entrepreneur

41. Factors of Production: labor

42. Capital is defined as the machinery, tools, and non-consumed items which are used in the production of the goods Factors of Production: capital

43. Factors of Production: capital

45. 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.

47. 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.

48. Relation between the company and the worker is set by an employment contract .

49. TIPOS DE MERCADOS LABORALES Depending on the Salary

51. MAIN CHARACTERISTICS OF OUR LABOR MARKET

52. Service Economy