Question

Think of one thing you have to do today. Describe how it does or does not meet all five parts of the definition of an activity?

Answer 1

Five parts of an economic activity

• Objectives or satisfactions - Complementary or competitive
• Consumption - Individual, family, community, or, nation
• Output - Consumption, investment, Government, or, foreign investment
• Production - Agricultural or non-agricultural
• Resources - Owned property or human labour

Dichotomes in the economic activities are:

• Public or collective vs. private
• Scarce or costly versus free
• Durable vs. non-durable

Activity - working in the services industry

Objective: working on the output using inputs

consumption: resources such as devices, electricity, skills

Output: the requisite service output

Production:  the process of producing the output for the firm or the consumers

Resources:

resources such as devices, electricity, skills