Understanding Economic Activity: Sectors and Factors
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Economic Activity
Economic activity is what humans undertake to acquire goods (products and services) that satisfy consumer needs.
Economic Goods
Economic goods are products and services generated by economic activity.
Products
Products are goods obtained directly from nature (e.g., fish) or transformed into something else (e.g., clothes, books). They can be classified by:
- Composition: They can be consumable (durable consumer goods, such as computers, or non-durable, such as pizza) or capital goods (tools).
- Function: They can be intermediate goods (wool produced by a sheep) or finished goods (the shirt made from this wool).
- Ownership: They can be private (belonging to people) or public (belonging to the state).
Factors of Production
Factors of production... Continue reading "Understanding Economic Activity: Sectors and Factors" »