![]() ![]() ![]() It is the most important economic measure of the state of a country’s economy. GDP is the sum of every economic activity in a country. Scarcity, which has plagued us ever since we first set foot on this Earth, has two halves: In other words, the things we want are scarce. However, even though we have unlimited wants, the resources we have available to get them is limited. Humans never get enough because there is always something else that we want or need. ![]() It refers to human’s insatiable appetite for things. With these activities, we secure the greatest satisfaction of unlimited wants with scarce and limited means. Put simply economic activities are those which we undertake to earn income, money, or wealth. One of the main aims of economic activity is to produce goods and services to make them available to consumers.Īll activities which we perform in exchange for money or things of value are economic activities. “The activity of producing, buying, or selling products or services.” Economic activity – main aim If Toronto University’s explanation is too complicated, perhaps you’d prefer Cambridge Dictionary’s simpler definition: “This process involves not only the production of goods and services but their distribution among the various members of the community.” “Economic activity is the process by which the stock of resources or stock of capital produces a flow of output of goods and services that people utilize in partial satisfaction of their unlimited wants.” The University of Toronto’s Department of Economics has the following definition: So is helping a friend study if you receive no money for that help. When somebody goes to a temple to pray or meditate, for example, they are performing a non-economic activity. The term contrasts with non-economic activities. Their employers are also economically active because they pay the workers and make and sell goods. For instance, running a small business is a great example of economic activity and one you can learn more about at .Įmployees working in a factory and receiving wages, for example, are performing economic activities. Additionally, any activities involving money or the exchange of products or services are economic activities. Any action that involves producing, distributing, or consuming products or services is an economic activity.Įconomic activities exist at all levels within a society. Economic activity is the activity of making, providing, purchasing, or selling goods or services. ![]()
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