1. 1. Economic activity.
Economic activity: the combination of tasks undertaken by people in order to obtain the goods required to meet their needs.
There are two types of goods:
- Material: food, manufactured items.
- Inmaterial (services): education and health care.
Market: is where commodities, merchandise and other goods are sold, bought and exchanged.
1. 2. Components of economic activity.
There are three basic components in the economic activity:
- Production, the combined number of goods that result from economic activity.
- Distribution, the transfer of products to consumers and their sale in the market.
- Consumption is the use of the goods that result from production.
1. 3. Sectors of economic activity.
Economic activities are grouped into economic sectors: range of activities with a number of shared features. There are three:
- Primary sector, includes activities concerned with the extracction of natural resources. These are are agriculture, livestock farming, forestry and fishing.
- Secondary sector, transformation of the natural resocurces provided by the primary sector, such industry.
- Terciary sector comprises activities that provide services. Includes transport, tourism, trade, education, health care.
According to the importance of these sectors there are huge contrasts around the world:
- The primary sector has greater importance in less developed countries.
The secondary sector is important in the so-called emerging countries.
The terciary sector dominates in the most developed countries.