Posts Tagged ‘Economic growth’
Economic activity is a term with various interpretations. It relates to aspects that are entirely within the study of economics. It might also describe the participation of an individual in the economy or the activities undertaken by business organizations. Economic activity is a term that is often related to the use of natural resources.
General Economics
Economic activity in terms of economics describes the economic environment and the recent developments in the economy of a particular country. It includes considerations on economic factors, such as inflation, unemployment and competition. The economic activity of a country determines its participation and level of involvement in the global market. For example, the economic activity in the UK has been influenced by increasing inflation and deficit, which reduced the interest of foreign investors in the country.
Individuals
Economic activity in relation to individuals refers to the participation of people in the domestic economy. People that pay taxes, receive salaries, exercise demand and consumption over certain products and services are economically active. Their level of involvement in the economy depends mainly on their income. People with higher income are more economically active as they both pay more taxes and exercise higher levels of demand. Individuals who are unemployed rely on social benefits and produce negative economic activity as they do not contribute to the development of the domestic economy
Basic economic concepts
- Benefit : results from the difference in costs and income from economic activity, if the expenses are higher losses will occur.
- Well , good is whatever satisfies a need and has a value .
- Service : is a benefit intended to meet a personal or social need but not to the production of an object.
- Cost of living and inflation : the cost of living is the minimum amount of expenditure necessary to obtain the goods and services; to calculate the value of adding a set of products and this result defines the CPI price index consumption. Rising commodity prices is what we call inflation.
- Investment and speculation : investment is the amount of money spent to start a business or maintain and improve it in order to make a profit. When you get a quick profit of a business based only on the price of goods it comes to speculation.
- Market : The set of consumers who demand goods and services to all the producers that offer them.
- Production and productivity , called production goods and services generated by an economic activity. The relationship between employees and the media produced determines productivity. If you get high productivity using limited means, it is said that the production is high. When used in many ways but productivity is low, productivity is low.
- Gross domestic product (GDP) and GDP per capita: GDP is the total value of goods and services produced in a territory for a year. GDP reflects the wealth or income generated in that territory, but to know what the average income or wealth of its population, ie GDP per capita, divide the GDP of the territory concerned by the number of its inhabitants.
Economic activity .-is the faculty that man has to work on things in nature to apply to the satisfaction of their needs, and is manifested by the whole order of the efforts and hard work to achieve that goal.
The activity is one, as one man’s end, and only we can make it class and distinction, calling it a moral, scientific and economic, etc. After having decomposed the total human fate in as many different aspects. This consideration is important because it shows the error of those who claim that economic acts are outside the general laws of activity and governed by a unique principle: profit, interest, etc.-economic activity, as addressed to a particular purpose, has settled into its application to the terms thereof, but the difference or variety of development does not touch, can not alter what is fundamental and relates to the subject and criterion of all human behavior.
Economic activity is subordinated to reason, is free, responsible, legitimate phone is the idea of absolute good applied to the order of material goods, and must be exercised with the sanction and the consent of the religious principle of moral duty, legal obligation and knowledge cientÃfico.-The self-love, interest and convenience are, here as always, nothing more than secondary principles.
The natural laws that govern the activity, not an efficiency gain special or different character, when it refers to the economic order are not fatal, not run by themselves, remain voluntary compliance and not enough to invoke them, but it is necessary obedecerlas. Economy-why not be reduced to the investigation of those laws to be asked to let them do, rather, is the main mission of our science in making the life accommodate to natural laws, determining what should be done to meet them.
It’s called economic activity to any process by which we obtain products, goods and services that meet our needs.
Economic activities are those that allow the generation of wealth within a community (city, region, country) through the extraction, processing and distribution of natural resources or some service , having as its goal the satisfaction of human needs.
Each community is that their resources are limited and therefore to meet these needs must make a choice that incorporates an opportunity cost .
The economic activities cover three stages: production , distribution and consumption .
As the production depends on consumption, economics analyzes the behavior of consumers.
Some economic activities are agriculture , the livestock , the industry , the trade , the communications , among others.
The countries are used specifically in an economic activity which allows to classify, according to production capacity and efficiency of such activity will generate wealth.