The Economic System

Goods
1. made by
  1. people
2. to
  1. satisfy their needs and wants
3. which can be
  1. Products
    1. which are
      1. material objets
    2. such as
      1. food
      2. books
      3. computers
  2. Sevices
    1. which are
      1. works that are done for someone
    2. such as
      1. transport
      2. education
      3. hairdressing
4. which are
  1. limited
5. which have
  1. a price
6. made with
  1. Factors of Production
    1. which can be
      1. Natural Resources
        such as
        earth
        water
        plants
        animals
      2. Human Resources
        which are
        people and their labor
      3. Capital Resources
        such as
        money
        equipment
        machinery
        buildings
Types of Economic Systems
1. Planned or Socialist economy
  1. the state controls the majority of the factors of production and decides how the economy must work
2. Interventionist or Centralised economy
  1. the state takes actions that affect the economy
3. Capitalist system or Market economy
  1. most of countries use this
  2. businesses and consumers control the economy with limited involvement by the state
  3. factors of productions belong to individuals and business (not to the state)
  4. the goverment can use goverment policy to influence the economy
Market
1. which is
  1. the method used to exchange goods and devices and et prices
2. Supply and Demand
  1. Supply are the goods you can buy
  2. Demand is how many people want to buy it
  3. which
    1. determine the price
      1. If supply is low
        price will increase
        so demand is going to fall
      2. If supply is high
        price will decrease
        so demand is going to grow
      3. when supply and demand are the same
        Equilibrium
Economic Agents
1. Families
  1. Consume goods
    1. spending money
  2. Contribute to the factors of production
    1. working in companies
2. Business
  1. produce
    1. goods
    2. services
  2. expenses
    1. workers' salaries
    2. investment in machinery
  3. income
    1. selling
      1. goods they make
      2. services they offer
3. The State
  1. healthcare
  2. education
  3. collect taxes
Labour Market
1. Workers
  1. human resource of a company
  2. subjet to market laws (in capitalism economy)
2. Supply = people who wants to work
3. Demand = number of workers company need
4. Changes in labour market
  1. Unemployment
    1. has increase in the world
    2. more than half people worldwide who are unemplyed
      1. do not receive unemployment benefit or financial help
  2. ICT
    1. has revolutionised companies' production methods
      1. product presentation
      2. product process
      3. workers' tasks
      4. teleworking
    2. Information and Comunication Technology
  3. Workers
    1. becoming more qualified
      1. educational opportunities
      2. company needs
  4. Working Conditions
    1. improve
      1. safety
      2. salaries
      3. as result of
        legislation
        agreements between social agents
        trade unions
        employers' associations
        who negociate
        and stablish new agreements
  5. unequalities
    1. between women and men
      1. salaries
        women lower than men
      2. contracts
        women more temporaly
  6. Companies
    1. can dismiss employeers
    2. and employ others
    3. in industrialised countries
      1. workers are demanding
        reduction of working hours
        flexible timetables
5. not the same in all countries
  1. many places
    1. don't recognise workers' rights
      1. decent salaries
      2. breaks
      3. holidays
    2. permit child labour
Gobalisation
1. all countries are interconected
2. enourmous free market system
3. global integration
4. ICT
  1. Internet
5. Multinationals
  1. recolocation of production centers
6. supported by
  1. international organizations
    1. Worl Trade Organization (WTO)
    2. United Nations (UN)
7. two types of trade blocks for economic integration
  1. Free Trade Zone
    1. remove tarifs
      1. on products they buy
        from other member country
    2. each member state
      1. applies
        its own economic policy
        towards the others states
  2. Common Markets
    1. remove tarifs
    2. allow the free movement
      1. of people and capital
        between member coutries
    3. adopt
      1. a common economic policy
        towards other states

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The Economic System

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	Created by NoSuBa almost 9 years ago

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