What is economy activities? Explain with example.

Economic activates are the activities done by people to earn their livelihood, there are the activities which can be measured in money and done with the intention to earn money out of these. There are four main economic activities, i.e. production, consumption, Exchange and distribution.

Production is the process of conversion of raw material to the final product, the person who is doing this is called the producer and it is done with the intention of earning money. Consumption is the use of these good and services for satisfaction and we pay for consumption, Exchange is the exchange of goods and services produced by us to goods and services produced by others, for example, a teacher teaches in a school and get salary and use these salary to buy fruits for consumption. Last economic activity is distribution, for producing any good, different resources are required, these are land, labour capital, enterprise and management and profit generated by producing goods is shared by them.