what is economic activity

what is economic activity

7 hours ago 2
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Economic activity refers to the actions and processes involved in the production, distribution, and consumption of goods and services within an economy. It involves combining resources such as capital goods, labor, and manufacturing techniques to produce specific goods or services. This process includes an input of resources, a production phase, and an output of products or services

. Economic activities can be classified broadly into three main types:

  • Primary activities : Extracting natural resources from the earth, such as agriculture, fishing, mining, and forestry.
  • Secondary activities : Manufacturing and processing raw materials into finished goods.
  • Tertiary activities : Providing services such as healthcare, education, retail, and transportation

Economic activity encompasses various tasks and relationships by economic agents aimed at obtaining goods and services to satisfy human needs. It includes production, distribution, redistribution of income, consumption, and savings

. In summary, economic activity is the driving force behind the flow of goods and services in an economy, involving production, supply, buying, selling, and consumption, all aimed at generating wealth and revenue

. It is measured by indicators like GDP, employment rates, and trade balances, reflecting the economic health of a country or region

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