what makes production possible?
capital(resources which are used
to produce goods and services)
Phisical capital. (tangible assets
buildings, machinery, computers...)
Human capital. Is a worker´s
knowledge, experience and
training a business activity.
Financial capital. Consists
of the money used to start
or maintain a business activity.
reflects how a country organizes
production, distribution and
consumption of goods and
services among its inhabitants
there are subsistence sys.
is the economic sysem most
often found in the world today.
its main characteristics are:
-private ownership of the means
-profit is the primary stimuls for
free competition- any person or
company can carry out any
economic activity they want.
supply and demaind regulates
how many products are produced
and their price