phases of economic activity

(APPLIED TO PROCESsED FOOD)

FROM THE FARM or the vegetable garden TO THE DINING TABLE

1. Production:

Production means growing the plants we harvest or raising the animals we use for food. Most food comes from domesticated animals and plants, and their production occurs on farms or ranches. Some foods are caught or harvested from the wild, such as some fish, mushrooms, and game.

2. Processing

Processing means changing plants or animals into what we recognize and buy as food. Processing involves different steps for different kinds of foods. For produce, processing can be as simple as cleaning and sorting, or it can involve trimming, slicing, or shredding [cortar en tiras] and bagging. Pasteurizing it usually processes milk; sometimes it is made into cheese. Nuts may be roasted, chopped, or ground (such as with peanut butter).

For animals, the first step of processing is slaughter. Meat and poultry may then be cut into pieces or ground. They may also be smoked, cooked, or frozen and may be combined with other ingredients to make a sausage, for example.

3. Distribution

Distribution means getting food from the farm or processing plant to the consumer or a food service facility like a restaurant, cafeteria, or hospital kitchen. This step might involve transporting foods just once, such as trucking produce from a farm to the local farmers’ market.

4. CONSUMPTION:

Individuals usually describe consumption as the final purchase of goods and services. This process involves a form of payment such as cash or credit card.

5. PREPARATION

Preparation means getting the food ready to eat. This step may occur in the kitchen of a restaurant, home, or institution. It may involve following a complex recipe with many ingredients, simply heating and serving a food on a plate, or just opening a package and eating the food.

PHASES OF ECONOMIC ACTIVITY TASK

Look at the example of processed food and follow it to describe how these products have arrived to you (four different phases)

1. Scarf of wool made

2. Hamburguer of minced meat, lettuce and bread

Who do participate in economy?

1.     PEOPLE: They participate in production and consumption

2.    Companies: they produce goods and services for a profit. The companies can be classified in three different groups in order to ownership and size.

2. 1.: Ownership: three different types inside this Group:

State owned: when the company is owned by the State. For us, Spanish people, this type of company is called “pública”.

Public: if its shares are sold and bought in the Stock Exchange. It means that these companies do not belong to a one person; they belong to their shareholders. For further information see the video linked and answer the questions.

Private: it would be owned by:

a.     One person: in this case, the company is called sole proprietorship.

b.     Various owners: the company belongs to more than just one person. For us, in Spain, it is called Sociedad limitada (S.L.).

c.     Another private entity, which, for example, bought the company.

2. 2.: Size: this refer to:

a. The number of workers who work in the company to receive wages.

b.  The profit: annual sales volume after taxes and discounts.

3. THE STATE: have a lot of functions in economy such as:

a. Regulate the economic activity

b. Give subsides, loans and economic activity in overall.

c. Generate jobs in public services

d. Provide public services

WHAT IS STOCK EXCHANGE AND HOW DOES IT WORK?

The Stock Exchange is nothing more than a giant globally network tend to organize the market place where every day huge sums of money are moved back and forth. In total over sixty trillion Euros per year are traded: more than the value of all goods and services of the entire World economy. However it is not apples or second hand toothbrushes that are traded on this Marketplace, but predominantly securities [valores]. Securities are rights to assets, mostly in the form of shares. A share stands for [significa] a share in a company. But, why are shares traded at all? Well, first and foremost the value of a share relates to the company behind it. If you think the value of a company in the terms of a pizza, the bigger the overall size of the pizza, the bigger every piece is. If for example Facebook is able to increase its profits with a new business model the size of the companies’ pizza will also increase and as a result so will the value of its shares. This is of course great for the shareholders. Shares with perhaps use to be 38 Euros could now be worth a whole 50 euros. When it is sold, this represents a profit of twelve euro per share. But, what does Facebook gain from this? The company can raise funds by selling the shares and invest or expand it’s business. Facebook for example has earned sixteen billion dollars from it listing on the Stock Exchange. The trading of shares though is frequently a game of chance. No one can say which company is going to perform well and what not. If a company has a good reputation, investors will back it. A company with a poor reputation or poor performance will have difficulty selling its shares. Exton unlike a normal market in which goods can be touched and taken home, on the stock exchange only virtual goods are available: they appear in the former share prices and tables on monitors such share prices can rise fall within seconds, shareholders therefore have to act quickly in order not to miss an opportunity even a simple rhythmic result in the demand for share falling fast regardless so the real value of the company of course the opposite is also possible if a particularly large number of people bye week shares because they see for example great potencial behind an idea their value will rise as a result in particular young companies can benefit from this even though their sales might be falling they can generate cash by placing their shares yet in the best case scenario this will result in their idea being turned into reality home in the worst case scenario this will result in a speculative bubble but nothing more than hot at and as in the case with bubbles at some point they will boast the value of Germany´s biggest 30 companies is summarized in what is known as the DAX Share Index. I will the tax – cut shows how well or poorly these major companies and thereby the economy as a whole are performing at the present time stock exchanges and other countries also have their own indices and all these markets together create a globally networked marketplace.

CONSUMPTION

Consumption can be defined in different ways, but is usually best described as the final purchase of goods and services by individuals. The purchase of a new pair of shoes, a hamburger at the fast food restaurant, or the service of getting your house cleaned are all examples of consumption. It is also often referred to as consumer spending.

There are many different theories on income and consumption behaviour: one of the most popular and well-known theories is the Keynesian theory (offered by John Maynard Keynes).

States Affecting Consumption

So what else do economists believe affects consumption and your decision to purchase products and services, besides your real income?

1.     Prices: if prices are higher, then a person's total level of consumption will be ___________, because consuming will use up a higher percentage of a person's ­­­­­­­­________________.

2.     Taxes: as taxes on goods and services (sales taxes) rise, people may not be able to afford as much as they used to and as a result will consume _____________. The income tax rates you pay also affect your ability and decision to consume. Higher tax rates lead to less disposable _____________, which is money you have left over for spending and savings after you pay taxes.

3.     Saving: people generally have two things they can do with their money. They can save or they can ____________. The more money people save, the less they have to consume in the short-run.

4.     Consumer Confidence: if people are worried about the economy or their own future income, they may delay making ____________ in order to provide some safety and extra cash for future expenses. They will save or _____________ their consumption until they feel better about what lies ahead.

Income (x2), lower, less, spend, purchases, delay

http://education-portal.com/academy/lesson/sustainable-consumption-definition-and-complexities.html

SUSTAINABLE CONSUMPTION

Sustainable consumption is the use of products and services that have a minimal impact on the environment so future generations can meet their needs. Learn about the benefits and the complexities that are associated with sustainable consumption

Consumption

Why are products produced? Well, the simplest answer is so they can be consumed. A pizza shop makes pizzas, so customers can buy them and eat them. A car manufacturer builds cars for commuters to buy and use during their daily travels. And energy companies generate power, so consumers can use electricity to turn on lights in their homes. When consumers consume goods and services, the economy grows because there is more money changing hands.

However, the production of goods and services uses raw materials provided by the environment, such as water, timbers and fossil fuels. Therefore, meeting the desires of the consumer for more goods and services can lead to more industrial and manufacturing processes, which can deplete resources and increase pollution. In this lesson, we will take a look at how consumption can be handled in ways that minimize damage to the environment, so products and services are available for future generations to consume.

Sustainable Consumption

Sustainable consumption is the use of products and services in a way that minimizes the impact on the environment, so that human needs can be met not only in the present but also for future generations. When sustainable consumption is practiced, resources are used wisely and waste products and pollution are minimized. The main way this is achieved is by doing more and better with less. In other words, we can find ways to meet our needs and desires without depleting our planet's finite natural resources.

This might include carpooling, using renewable energy sources, such as solar or wind power, developing alternative fuel sources, such as biofuels, for our transportation needs and using environmentally friendly cleaning products. Practicing sustainable consumption can ensure that the environment has resources available long into the future. However, in most industrialized and developed nations, consumption patterns are not sustainable.

Their products and services rely on too many natural resources and create too many harmful emissions when consumed. For example, most developed countries rely on non-renewable fossil fuels for their transportation needs. As more drivers hit the roads and more fuel is consumed, fossil fuel reserves are depleted, and because fossil fuels emit greenhouse gases into the atmosphere when they are burned, more consumption means more pollution.

This level of consumption cannot be sustained due to the depletion of the non-renewable resource and the adverse effects to the environment. Of course, unsustainable consumption patterns are not just a problem for developed countries, but also for many developing countries.

In developing nations, consumption patterns can be unsustainable because citizens of these countries may need to exploit their natural resources to meet their basic living needs. For example, subsistence farming, which is farming that provides only for the farmer's needs without surplus for the market, requires the clearing of woodlands to make room for farms and is one of the leading causes of deforestation. This can lead to environmental damage, such as soil erosion, drier climates and higher levels of carbon dioxide in the atmosphere.