Economic Activity: Sectors, Phases, and Company Types
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Understanding Economic Activity: Concepts and Classifications
Economic activities encompass all processes used to obtain the goods and services that people need.
Phases of Economic Activity
- Production: The creation of goods and services.
- Distribution: The process of making goods and services available to consumers.
- Consumption: The use of goods and services by individuals and organizations.
Key Economic Sectors
Economic activities are broadly grouped into three main sectors:
- Primary Sector: Activities that obtain food and raw materials directly from the natural environment (e.g., agriculture, mining, fishing).
- Secondary Sector: Economic activities that transform raw materials into finished products (e.g., manufacturing, construction).
- Tertiary Sector: