Economic Activities: Definition and Types

Study Notes

Economic activity refers to the production, distribution, and consumption of goods and services within an economy.
It involves the creation of value through the transformation of inputs into outputs.

Primary activities: Extraction of natural resources, such as mining, agriculture, and fishing.
Secondary activities: Manufacturing and processing of raw materials into goods, such as construction, manufacturing, and energy production.
Tertiary activities: Provision of services, such as retail, transportation, communication, and finance.
Quaternary activities: Knowledge-based services, such as education, research, and development.

Private sector: Businesses and individuals engaged in economic activity for profit.
Public sector: Government agencies and state-owned enterprises engaged in economic activity.
Not-for-profit sector: Organizations that aim to achieve social or environmental goals rather than profit.

Gross Domestic Product (GDP): The total value of goods and services produced within an economy.
Gross National Product (GNP): The total value of goods and services produced by a country's citizens, regardless of location.
Employment rates: The percentage of the labor force actively employed.
Inflation rate: The rate of change in the general price level of goods and services.

Demand and supply: The balance between the quantity of goods and services demanded and supplied.
Technology: Advances in technology can increase productivity and efficiency.
Government policies: Fiscal and monetary policies can influence economic activity.
Global events: International trade, global economic trends, and geopolitical events can impact economic activity.

Economic activity encompasses the production, distribution, and consumption of goods and services within an economy.
It involves the creation of value through the transformation of inputs into outputs.

Primary activities involve the extraction of natural resources, such as mining, agriculture, and fishing.
Secondary activities involve manufacturing and processing raw materials into goods, such as construction, manufacturing, and energy production.
Tertiary activities involve the provision of services, such as retail, transportation, communication, and finance.
Quaternary activities involve knowledge-based services, such as education, research, and development.

The private sector consists of businesses and individuals engaged in economic activity for profit.
The public sector consists of government agencies and state-owned enterprises engaged in economic activity.
The not-for-profit sector consists of organizations that aim to achieve social or environmental goals rather than profit.

Gross Domestic Product (GDP) measures the total value of goods and services produced within an economy.
Gross National Product (GNP) measures the total value of goods and services produced by a country's citizens, regardless of location.
Employment rates measure the percentage of the labor force actively employed.
Inflation rate measures the rate of change in the general price level of goods and services.

The balance between demand and supply affects economic activity.
Advances in technology can increase productivity and efficiency.
Government policies, such as fiscal and monetary policies, can influence economic activity.
Global events, including international trade, global economic trends, and geopolitical events, can impact economic activity.