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Production is the process of making a material good with the help of factors of production, which has a certain value in the given circumstances.
Distribution of resources – the provision of limited resources to different subjects of productive activity. If we are talking about the distribution of profits, we mean the transfer of the finished goods or the cash equivalent to the co-owners of the enterprise.
Consumption is the final stage of the cycle of a good or service, its use to meet human needs and requirements.
Need is the need for something to support and develop human life and society as a whole. Satisfaction of needs is the main motive for the realization of economic activity.
Goods are the means by which needs can be satisfied. There are three categories of goods:
Economic goods are limited means that are necessary to satisfy people’s needs. To acquire economic goods, we have to give up other goods. To create them, we need certain inputs.
Free goods are goods that exist in open, unrestricted access. For example, sunlight, air, water in a river.
Capital – the totality of man-made resources of production. There are two kinds of capital:
Physical capital – equipment, buildings, tools, transportation highways, that is, everything that actually relates to the process of production or transportation.
Financial capital – securities or money that is used as part of the production process, that is, for enrichment. Source –
