Economic activity

What is economic activity?

Economic activity is what is carried out by humans in order to acquire goods (products and services) that satisfy consumer needs.

Economic goods are products and services generated by economic activity.

Factors of production

Economic agents and economic sectors

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Function

Ownership

Composition

they can be consumable or capital goods

they can be intermediate goods or finished

they can be private or public

The factors of production are the resources that are required for the generation of economic goods

Human resources

Capital

Natural resources

This is material, that are needed to obtain products and provide services

These are people who, that exploit and convert natural resources into economic goods

Non-renewable

Renewable

Partially renewable

solar energy, wind, tides, flowing water

clean air, drinking water

fossil fuel, minerals

Economic agents

Economic sectors

are those elements that have a role in converting the factors of production into goods and services

Companies

The state

People and families

Economic activities are grouped into three sectors: the primary sector, the secondary sector and the tertiary sector.

They are private economic agents that make up small production units

These are also private but do not consume the products or services that they generate

It offers services to people and companies, and is financed by collecting taxes from people, families and companies

Secondary sector

Tertiary sector

Primary sector

activities involved in obtaining resources directly from raw materials

activities involved in converting raw materials into manufactured products or building housing and infrastructure

including lending services