The 5 Aspects Of Economics

1. Production
A. Creation of economic good
B. Increase utility of good, ability of good to satisfy I they want.

3 types of production

Primary production > deals with extracting raw materials. Involves traditional economic act. like
1. Harvesting 2. Fishing/hunting 3. Mining 4. Farming

Secondary production > deals with the manufacturing and processing
Example: 1. Canning 2. Bakery

Tertiary production > rendering valuable services to fellowmen Example: 1. Teaching 2. Banking 3. Caregiving

2. Exchange
Exporting and importing of products.
Three types of exchange
1. Goods for goods
2. Service for service
3. Good or service

3. Consumption
The most important functions in economics, the ultimate of economic activity, if there is no consumption there will be no production and distribution.

Consumptions are consumers

Ways of consumption

1. Eating
2. Produce other goods
3. Consume through services
4. Wearing, continues  usage

4. Distribution
Apportionment of wealth or income derives from the shares of factors of production.

Factors of production
1. Land - rent
2.labor - wage/salary
3.capital - interest
4. Entrepreneur - profit

5. Public finance
The study of revenue uses and expenditure of the government.

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