Fundamentals of Economic Activity and Market Systems
Classified in Economy
Written on in 
English with a size of 2.36 KB
Fundamentals of Economic Activity
Economic activity is the combination of tasks undertaken by people in order to obtain the goods required to meet their needs. These goods can be material, such as food, manufactured items, and cars; or immaterial, such as education and health care.
Key Economic Indicators and Units
GDP: Gross Domestic Product
GDP is the best way to measure a country's economy. It is the total value of everything produced by all the people and companies in the country.
Business
It is the basic unit for the production of economic goods. Its function is to produce, distribute, and sell goods to consumers, and its aim is to obtain economic profit.
Capital
It is the combination of non-natural resources needed for production. It can be physical (machines), financial (credit), and human (labour).
Economic Systems and Structure
The Capitalist System
Economic activity is regulated by the market; that's why it is also known as a market economy. It is based on the law of supply and demand, private property, and the search for maximum individual profit.
Components of Economic Activity
They are:
- The production of goods.
- Distribution or transfer of these goods to consumers.
- Consumption of these goods by consumers.
Economic Circuit
It is the relationship between the different agents (businesses, State, and families), the job market, and the goods and services market.
Economic System
It is the way of organizing and undertaking economic activity and answers these three questions: which goods are to be produced, how should they be produced, and who are they to be produced for.
Global Economic Trends
Emerging Economic Powers
They are countries that grow at a faster rate than that of the rest of the world. They can be historically underdeveloped countries whose GDP is significantly growing, historical economic powers, or countries that play an important economic role in their regions.
Globalisation
It consists of the growing integration of national economies into a global market economy, in which almost all areas on Earth are interconnected.