Economic Activity: Definition & Examples

Economic Activity: Definition & Examples
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  • 1:24 Types of Economic Activities
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Lesson Transcript
Instructor: Beth Hendricks

Beth holds a master's degree in integrated marketing communications, and has worked in journalism and marketing throughout her career.

Do you like making money? Economic activities should fit the bill! In this lesson, you'll learn more about economic activities, the various types and how non-economic activities differ from money-making ventures.

Economic Activities

Have you ever worked a job? Bought a hamburger? Purchased a video game at a local game store? If so, you've participated in what the business community calls economic activities. Economic activities are those steps related to the consumption of goods and services and activities in which money is exchanged for a product or service.

Economic activities are performed for the purpose of making money, gaining wealth, and creating and producing items that can be offered to the public for sale. Restaurants, large retailers and even small businesses engage in economic activities every day. The outcome of economic activities is measured monetarily.

By contrast, non-economic activities are those performed without money in mind. Maybe you volunteered at a local animal shelter or worked to prepare care packages for the military. Non-economic activities are conducted voluntarily, typically out of a sense of affection, sympathy or similar emotion. It could be related to a social cause, a religious preference, a recreational choice or a charitable goal. In non-economic activities, money is not a determining factor and cannot be used to measure the outcome; rather, that is measured in satisfaction, fulfillment and happiness.

Types of Economic Activities

There are several types of economic activities including business, professions, and employment. Let's take a closer look at each.

Our first type of economic activity is business. Whether it's a formal business, an entrepreneurial venture, or a small lemonade stand in the front yard, the economic activity of business is any activity where goods and services are exchanged for the earning of money. Any business that offers products or services to earn a profit or make a living is engaged in an economic activity.

Similarly, all the various components of a business involved in creating and distributing goods and services to the public are considered economic activities, such as marketing, production, warehousing and more.

Where else might you find business as an economic activity? A cab driver, a bank, an insurance company, even a pizza delivery store.

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