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What are the components of economic activity?
Production, Exchange, Consumption, Investment
What is production?
The creation of products
What is consumption?
The use and enjoyment of products
T or F: Production is the transfer of products
False
T or F: Consumption is the creation of products
False
What produces, distributes, and sells products to make a profit?
Companies
Who are people who buy companies products?
Consumers
What do companies do?
produce, distribute, and sell products for a profit
Who are consumers?
People who buy a companies products
What do we use money for?
To purchase products and goods
What are savings?
Money that we don't spend but save for future needs
What is investment?
Purchasing goods not for consumption but for further production.
What is meant by exchange"
The transfer of goods and services between producers and consumers, which may be followed by either immediate or delayed consumption or by investment
How does production create value and wealth?
Through the manufacturing products, the cultivation of land or the provision of services like transport, healthcare and security
