The Economy

Are all the processes used to obtain
the goods and servicies that people need.
It is divided in three phases:

Production

Distribution

Comsumption

Primary sector:
activities which obtain food
and raw materials fron the
enviroment.

Secondary sector:
economic activities which
transform raw materials
into finished products.

Tertiary sector:
called service sector, consist
in many different activities
which provide a service to the
society.

People

They participate in production.

They consume the goods
and servicies. This estimulate
economic activities.

Companies

They produce for a profit. We can
classified them by:

Ownership

State-owned.
Owned by the goverment.

Public.
S.A.

Privately-owned

Sole proprietorship:
owned by one person

Limited companies:
various owners.

The part of a companie is called
"acciones" in Spanish, and they're
buy in "la bolsa".

Size

It can refer to either the
number of workers a companie
employs or to the profit.

Natural resources

Renewable

Non-renewable

Capital

Physical capital:
Consist in tangible assets,
as buldings, machinery...

Human:
workers knowledge

Set of skills necessary to
carry out an activity.

Technology:

Help companies in:
-increasing production
-saving labours costs
-creating new goods and
more profitable methods
of production.

Manual

Mechanical

Automated

Work

Productivity os a worker
is measured by the amount
of goods that produce in
one day.

Active and inactive population.

Active

more tha 16 years old

have a work

don't have job,
but they're searching
for one.

Inactive

Less than 16 years

Without work and not
searching for it

Retired people

Market organization

work for an employer

Cooperatives:
You are worker
and boss at the
same time

Self-employers workers
work for themselfs

Labours relations

Patronal: represent the bussinesmen

Sindicato: reprensent employers

Convenio colectivo:
agreement between workers and employers

Unemployment problem

Cyclical: changes on economic activities

Seasonal: variations over turism and agriculture
over the year

Structural: bad economic organization

Technological: technical improvements

Negative effects:
-Less compsumtion
-Tax collection decrease and
goverment's spending increases
-Underground economy appears
-People behaviours change

Subsistence system

They product enough to meet
their basic needs.
It happend in less-developed
countries

Communist system

It do not recognise private ownership,
and the economic activity is controlled by
goverment. It means that state owns all the
companies.

Capitalist system

It is also called free-market system.
Its main characteristics are:

Private ownership

Profit is the main stimulus for
economic activity

Supply and demand regulates the
production

Free competition. It means
any person or company can carry
out an economic activity, as long as
they obey the laws.

When any of the capitalist sistem's
characteristics are abstence...

Monopoly: Only a company control production
and sale of a product

Oligopoly: when just a few companies can
produced and distribuyed a product.