It is called economic activity for any work activity in which products, goods or services are generated and exchanged to meet the needs of the populations. Economic activity enables the generation of wealth within a community (city, region and country) through the extraction, transformation and distribution of natural resources or some type of service and resource.
1 In a broad sense, the economy refers to the organization of the use of scarce resources (limited or infinite) when implemented to meet individual or collective needs, so it is a system of interactions that guarantees this type of organization, also known as the economic system.
2 3 Economic activities cover three phases: Production, distribution and consumption.4 Since production is dependent on consumption, the economy also analyzes consumer behavior in relation to products.
Agriculture, livestock, industry, trade and communications are some economic activities.
Many countries are used specifically in some economic activity, which allows them to be classified; their wealth is generated according to the production capacity and efficiency of that activity. However, the communities find that their qualities are limited and must make a choice that includes an opportunity cost in order to meet their needs.
Basic economic concepts
Profit: as a result of the difference in expenses and income derived from an economic activity, losses will occur if expenses are higher.
Well: a good thing is all that satisfies a need and has a value.
Service: It is an advantage designed to meet a personal or social need, but it does not involve the production of an object.
Cost of living and inflation: the cost of living is the minimum expenditure necessary to obtain basic goods and services; to calculate it, the value of a set of products is added and the CPI consumer price index is defined with this result. The increase in product prices is what we call inflation.
Investment and speculation: the investment is the amount of money intended to start or maintain a business and improve it in order to make a profit. If you get a quick profit from a commercial operation based only on the price of the goods, you talk about speculation.
Market: Consumers demanding goods and services from all producers offering them.
Production and productivity: We call production goods and services resulting from economic activity. Productivity is determined by the relation between what is produced and the means used. If high productivity is achieved with few means, it is said that production is high. Production is low when many media are used, but productivity is low.