1- The economy is responsible for the administration or use of resources wich satisfy the needs and wants of individuals and groups, economic goods, include: Products: material objects such as food, books or computers. Services: work that is done for someone, but wich doesn't produce a material product, such as transport as transport, education or hairdressing.
2- Economic activities produce economic goods using different resources called factors of production.
Natural resources: earth, water, plants, animals, etc.
Human resources: people and their labour (teacher,doctor,hairdressing)
Capital resources: money, buildings, machinary, equipment,etc.
3-Planned or socialist economy: the state controls the majoritary of the factors of production and decides how the economy must work. CUBA-NORTH KOREA-VIETNAM
-Interventions or centralised economy: the state takes actions that affect the economy. SPAIN, FRANCE,ITALY
-Capitalist system or market economy: businesses and consumers control the economy with limited involment by the state. UNIT STATES- AUSTRALIA-JAPAN.
4- The market economy is the system in which people and companies produce, buy and sell goods and servicies freely. The market is the method used to exchange goods and servicies and set prices.Supply and demand determine the prices of goods and servicies.
-If the supply of a product is high the price goes down to encourage people to buy them.
-If the supply of a product is low, the price goes up because consumers are prepared to pay more.
5- Economic agents can be divided into three types:
-FAMILIES AND ECONOMY: they consume and they contribute to the factors of production, as workers in companies.
-BUSINESSES: These produce the goods and servicies that are on offer in the market have expenses and income from selling the products.
-THE STATE: Offers servicies such as healthcare or education and collects taxes.
6- Changes in the labour market:
-UNEPLOYEMENT has increased in many parts of the world
-ICT has revolutionised companies production methods
-WORKERS are becoming more qualified
- Can dismiss their emplyees and employ others
-Working conditions have worsened
- There are still inequalities between men and women
7- The globalisation of the economy: In today's world, all countries are interconnected, they form part of an enourmous free market system.
This process of global integration is called globalisation.
-ICT (specially the internet) allows companies all over the world to be in contact with each other.
-Multinationals and the relocation of production centres.