Understanding Economic Activity: Production, Distribution, and Consumption
What is economic activity?
Economic activities are all the processes used to obtain the goods and services that people need. The three phases of economic activity are:
- Production → is all the goods and services which are created as a result of an economic activity.
- Distribution → is the process of moving goods and services from the place of production to the consumer.
- Consumption → is all the goods and services that people buy to satisfy their wants and needs.
History of payment
- Barter → direct exchange of goods
- Natural coins → valuable natural items, with an agreed value like shells, cocoa, salt, furs
- Metal coins → the first metal coins were made in Lidia (present-day Turkey) in the 7th century BC
- Paper money → notes first appeared in