Stages, sectors and economic agents

2. STAGES, SECTORS, AND ECONOMIC AGENTS STAGES OF ECONOMIC ACTIVITY 1.

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Production Creating a product or providing a service.

It is located close to resources: -

Natural resources Energy sources Workers Capital

2. Distribution Delivering products and services t consumers or customers.

This requires access to good transport and telecommunications infrastructure.

3. Consumption Acquiring products or services in exchange for money.

This is located in areas where the population has purchasing power.

2. STAGES, SECTORS, AND ECONOMIC AGENTS SECTORS OF THE ECONOMY 1.

Primary sector: -

Economic activities that directly involve the use of natural resources.

These are agriculture, livestock farming, fishing, mining, forestry and aquiculture.

2. Secondary sector: -

Industrial and construction activities.

The manufacture of material goods: 1. Finished goods - Supplied directly to the consumer.

2. Intermediate goods - used by oher industries

3.Terciary sector - Economic activities elated to services.

- workers supply other people and companies with knowledge and skills - Examples: banking, education, healthcare, hotels and restaurants‌

2. STAGES, SECTORS, AND ECONOMIC AGENTS ECONOMIC AGENTS 1. Public sector: - These are town councils, regional governments, the State and the stateowned companies.

It provides essenial services to the population and companies.

These include education, healthcare, security and infrastructure.

These services ar paid for with taxes collected from households and companies.

2. Households: Individuals and families work to obtain the necessary income to purchase goods and services, which they then consume to meet their needs.

They pay taxes to maintain public services.

3. Companies: These create products and services which they supply to society.

Their activity generates profits.

These create jobs, make investments and pay taxes.