The Economy
Economic activities organization
Capitalist system
When any of the capitalist sistem's
characteristics are abstence...
Oligopoly: when just a few companies can
produced and distribuyed a product.
Monopoly: Only a company control production
and sale of a product
It is also called free-market system.
Its main characteristics are:
Free competition. It means
any person or company can carry
out an economic activity, as long as
they obey the laws.
Supply and demand regulates the
production
Profit is the main stimulus for
economic activity
Private ownership
Communist system
It do not recognise private ownership,
and the economic activity is controlled by
goverment. It means that state owns all the
companies.
Subsistence system
They product enough to meet
their basic needs.
It happend in less-developed
countries
Population and work.
Unemployment problem
Negative effects:
-Less compsumtion
-Tax collection decrease and
goverment's spending increases
-Underground economy appears
-People behaviours change
Technological: technical improvements
Structural: bad economic organization
Seasonal: variations over turism and agriculture
over the year
Cyclical: changes on economic activities
Labours relations
Convenio colectivo:
agreement between workers and employers
Sindicato: reprensent employers
Patronal: represent the bussinesmen
Market organization
Self-employers workers
work for themselfs
Cooperatives:
You are worker
and boss at the
same time
work for an employer
Active and inactive population.
Inactive
Retired people
Without work and not
searching for it
Less than 16 years
Active
don't have job,
but they're searching
for one.
have a work
more tha 16 years old
Factors that make
production posible.
Work
Productivity os a worker
is measured by the amount
of goods that produce in
one day.
Capital
Technology:
Help companies in:
-increasing production
-saving labours costs
-creating new goods and
more profitable methods
of production.
Automated
Mechanical
Manual
Human:
workers knowledge
Set of skills necessary to
carry out an activity.
Physical capital:
Consist in tangible assets,
as buldings, machinery...
Natural resources
Non-renewable
Renewable
Facts which contributes
to economic activity.
Companies
They produce for a profit. We can
classified them by:
Size
It can refer to either the
number of workers a companie
employs or to the profit.
Ownership
Privately-owned
Limited companies:
various owners.
The part of a companie is called
"acciones" in Spanish, and they're
buy in "la bolsa".
Sole proprietorship:
owned by one person
Public.
S.A.
State-owned.
Owned by the goverment.
People
They consume the goods
and servicies. This estimulate
economic activities.
They participate in production.
Economic sectors
Tertiary sector:
called service sector, consist
in many different activities
which provide a service to the
society.
Secondary sector:
economic activities which
transform raw materials
into finished products.
Primary sector:
activities which obtain food
and raw materials fron the
enviroment.
Economic activity
Are all the processes used to obtain
the goods and servicies that people need.
It is divided in three phases:
Comsumption
Distribution
Production
