→ Management: the range of decisions associated with the acquisition, allocation and integration of resources required to perform a certain economic activity (which is the production and consumption of economic goods)

Maslow’s Hierarchy of needs

1. Self-actualization: achieving one’s full potential
2. Esteem needs: prestige and feeling of accomplishment
3. Belongingness and love needs: relationships, friendships
4. Safety needs: security, safety
5. Physiological needs: food, water, warmth, rest

→ 1 is a self-fulfilment need

→ 2 + 3 are psychological needs

→ 4 + 5 are basic needs

Primary activities

• Management: planning, organising, leading, controlling
• Marketing: research, analysis → 4P’s: Price, Product, Place, Promotion
• Finance: using money for business operations

Types of goods

• Essential

• Differentiable

  → goods perceived as different, USP, brand

• Consumer

  → products bought by individuals for personal use

• Disposable

  → goods intended for single/short-term use

• Private

  → goods consumed exclusively by individuals, no simultaneous consumption

• Non-essential

• Commodities

  → goods perceived as identical, interchangeable

• Industrial

  → products purchased by organization for use in producing other products

• Durable

  → goods designed for an extended use, lasting for years

• Public

  → non-excludable, non-rivalrous goods such as infrastructure

Economics activity and the circular flow model

• Technical transformation: physical, spatial, logical
• Transactions: buying input and selling output
• Complementary activities: institutional structure design, HR Management, accounting