UD2.1.How economic activity works

Activities to deliver the goods produced by companies to consumers

• production

• distribution

• consumption

The manufacture of consumer goods that directly meet the needs of consumers

• production

• distribution

• consumption

The manufacture of intermediate goods such as materials, machines and tools, which are used to make consumer goods

• production

• distribution

• consumption

The manufacture of goods combines technology, natural resources and labour

• production

• distribution

• consumption

Companies decide what goods are manufactured, the quantity and the methods to use

• production

• distribution

• consumption

People satisfy their needs by purchasing goods and services

• production

• distribution

• consumption

Storage, transportation and sales

• production

• distribution

• consumption

What are primary/basic needs?

• Those that increase people's wellbeing

• Those that increase people's economic level

• Those that are essential to people's survival

What are secondary needs?

• Those that increase people's wellbeing

• Those that increase people's economic level

• Those that are essential to people's survival

What is consumerism?

• Excessive consumption or a desire to purchase products and services on a large scale by individuals in society

• An ideology based on social control and collective planning of community life, the abolition of private property and the elimination of social classes

• An order or social and economic system based on private ownership and capital