Ten Things About Types Of Economic Activities You Have To Experience It Yourself | types of economic activities

One of the most important goals of economic activity is to create products and services to make these easily available to potential consumers. Simply put; economic activity is the one that undertakes to make money, income, or wealth available to individuals so they can either spend it or save it. With such economic activities, ensure the greatest satisfaction of limited and unlimited desires with scarce and expensive means.

The three main categories of economic activities are classifies into two: economic classifications are based on the actual production process and/or production results, while non-economic activities are self-sufficient in nature. Among the three, the production process remains the single most important classification, while other types of economic activities are self-sufficient in nature if they simply serve as an extension or complement of production. It should be noted that all economic activities are not self-sufficient; rather, they rely on the operation of the market as well as the state's political and social infrastructure. Classifying economic activities further into two further groups further illustrates the significance of the role of the state in the overall economy. Those classified as class 10, which includes the major economic activities of marketing and banking; production and processing of basic raw materials; distribution, storage and transportation of finished goods; creation and development of knowledge-based economy and information society; creation and construction of internal business information systems; and financial activities, fall under the classes 11, which include the activities done by government or the private sector on behalf of the public.

Although all economic activities fall under the classes 11, it must be understood that not all non-economic activities are directly or indirectly motivated by the pursuit of unlimited wants. For example, development of a town in a rural setting requires adequate infrastructures and a stable state-of-commerce before people will be enticed to settle there and build houses and develop businesses. However, when one considers that the primary motivation for most individuals to leave their native places to settle in towns is employment, the latter type of economic activities is more directly related to unlimited wants. This then highlights the difference between economic development of unlimited wants.

Since all economic activities fall under the purview of state intervention, there exists a huge network of interconnected state and private agencies whose activities overlap significantly with each other. Most of these economic activities focus on creating markets where buyers and sellers can come together and find a market for their products and/or services on the basis of mutually agreed upon bargains and prices. Another important aspect of the state sector is the regulation and control of industries within a specific geographical area. While the government may not directly intervene in the running of an industry, it does exert indirect pressure through various rules and regulations that businesses must comply with.

There are two main types of direct economic intervention, direct state action and indirect state action. In the former, the state decides to change the price level of a specific economic activity or to increase or decrease the number of workers employed in a certain business. For the latter kind of intervention, the state controls the flow of capital within and across various economic activity sectors so . . . . . . as to ensure that particular industries do not suffer from adverse effects as a result of changes in the availability of resources. In this regard, the state can either intervene directly through the functioning of its financial system or indirectly through the operation of various aspects of the market mechanism itself, like the operation of financial intermediaries.

Although state interventions have been adopted in almost all the modes of economic activity, they differ in their scope and effects on the sector concerned. State interventions have been adopted to facilitate the absorption of external shocks by adopting a coordinated approach that addresses the macroeconomic standing of all the affected entities. Direct interventions, on the other hand, tend to influence only a few aspects of the sector affected, but yield far-reaching macroeconomic changes. Indirect state interventions tend to be implemented to address macro issues affecting the distribution of income and wealth, while enhancing productivity at the national level.

Myanmar _ Classification of Types of Economic Activities - types of economic activities
Myanmar _ Classification of Types of Economic Activities – types of economic activities | types of economic activities

6ro Básico .Social Studies. Economic Activities
6ro Básico .Social Studies. Economic Activities | types of economic activities
What is meant by economic activities Describe the three types of - types of economic activities
What is meant by economic activities Describe the three types of – types of economic activities | types of economic activities
Sectors of the economy - Economics Help - types of economic activities
Sectors of the economy – Economics Help – types of economic activities | types of economic activities
6 Gigantic Influences Of Three Types Of Economic Activities - types of economic activities
6 Gigantic Influences Of Three Types Of Economic Activities – types of economic activities | types of economic activities
What Are Economic Activities ? Types of Economic Activities - types of economic activities
What Are Economic Activities ? Types of Economic Activities – types of economic activities | types of economic activities