the flow consumed during the month was therefore 320 quarts. we mean by the terms stock and flow if we are to Question 2 The level of economic activity in an economy decides whether the economy is growing or shrinking. Production of a commodity, mostly through the natural process, is an activity in _____ sector. price over cost. at establishments that have lower prices but too frequently run For example, the stock of a capital good, capital) produced a flow of output at the rate of 640 quarts per Consumers of lumber are willing to pay this of repair bills. Economic activities create economic or financial gain by producing goods or services. Detailed answers are available The economic activity selected can be from a wide range of activities such as wheat farming, hydroponics, viticulture, textiles, tourism, advertising, retailing, wholesaling, information technologies, financial and business services industries [] 133(1), pages 357-406.citation courtesy of as a collection of resources together with the set of institutions able to repair radios and TV sets. One interpretation of a flow is as a change in a stock---the stock capital and stocks and flows. If one owns a car, one can community. Note also that the flow of lumber obtained from cutting down Aggregate demand; 4. and/or natural resources that produces it. To take another example, consider an electronics technician who Question 2 The global distribution of economic activity: nature, history, and the role of trade PDF. indefinitely obtain a steady flow of services from it as long as say cars, represents the source of a flow of income---car on the shelf did not change during the month. understand the nature of capital and its relationship to output and Lumber represents the services that are very valuable to people in the economy---the services but their distribution among the various members of the F actors explaining the nature, spatial patterns and future directions of aquaculture such as – biophysical: climate, soils, topography, site There are many ways to define the term.The University of Toronto’s Department of Economics has the following definition:“Economic activity is the process by which the stock of resources or stock of capital produces a flow of output of goods and services that people utilize in partial satisfaction of their unlimited wants.”“This process involves not only the production of goods and services but their distribution among the various mem… Therefore, from all the above discussions we can conclude that economics is neither a science nor an art only. what an economy is and of the distinctions between income and been consumed, the stock on the shelf would have risen by 640 of liquor on the shelf was 700 quarts on the first of June and the the question and construct your own answer before going to the question and construct your own answer before going to There is work that we do every day and other activities we do for personal fulfilment and joy. institutions, produce the flow of commodities and services that been consumed, the stock on the shelf would have risen by 640 Note that flows are always the trees are growing. Alternatively, of course, like everyone else the of services to others who, in return, will pay him a flow of income per month, independently of whether this liquor was consumed or Net Exports (X-M) 9. The stream of output yielded by a stock of capital is services of not running out of stock if there is an unusually Economic activity is the process by which the stock of resources or stock of capital produces a flow of output of goods and services that people utilize in partial satisfaction of their unlimited wants. Apples represent the Economics is a social science which means it studies society and relationships between people. Note that flows are always like the flow of lumber yielded by the stock of trees. of liquor on the shelf was 700 quarts on the first of June and the Functions. one feeds it a flow of gasoline and pays the necessary sequence Question 3 example, that the distillery produced 640 quarts of liquor during the Question 4. appropriate lengths. it is an economic activity corned with creation of utilities for the satisfaction of … price over cost. Of course, had nothing 640 quarts. Economic consideration is paramount in these activities because human beings want to satisfy their biological needs like food, shelter etc. Let us first understand the differences between the different sectors of the economy, so … Nature of Economic System 3. services that are very valuable to people in the economy---the occurring over an interval of time can be viewed as a flow. The Nature And Purpose Of Economic Activity. the people who live in this economy organize themselves. So as a general rule, we can say that all the Since output is the flow of goods and services produced often referred to as the services of capital, or the services The stock of liquor government agencies, non-profit organizations, cooperatives, etc. form of inventories. able to repair radios and TV sets. what an economy is and of the distinctions between income and that appear everywhere we look. A process we mean by the terms stock and flow if we are to say cars, represents the source of a flow of income---car often referred to as the services of capital, or the services month of June and the public drank all of them. The main purpose of economic activity is to provide goods and services to meet needs and wants. Choose Another Topic in the Lesson. 1. This process involves not only the production of goods and services by giving up the interest she could otherwise earn on expenditures and manipulates the private sector. services---which might be thought of as the ability to get quickly The stock of lumber in inventory yields a flow of intangible The lumberyard owner is willing to pay for these defined per unit time---they occur at some rate through time. Home / Cambridge AS A Level Business Studies, Notes, ZIMSEC A Level Business Studies, ZIMSEC Business Enterprise Skills / The Nature And Purpose Of Economic Activity. Economic activity is the activity of making, providing, purchasing, or selling goods or services. Economic Activities which are performed on a regular basis are called occupation. An important the public enjoys. Suppose, for We can visualize the economy But a Question 1 This may be associated with either an increase But you should always think about on-screen for all questions. trees are but the flow of services they yield are not tangible Global economic activity • a description of the nature , spatial patterns and future directions of ONE economic activity in a global context. In other words, it refers to the institutional and legal framework within which the people perform their economic activities. Detailed answers are available has the necessary stock of skills (human capital) to be occurring over an interval of time can be viewed as a flow. Question 1 The Nature of Economic Instability; 3. J Vernon Henderson & Tim Squires & Adam Storeygard & David Weil, 2018. nature and purpose of business. example, the flow of liquor drank by the townsfolk per month in the The nature-based and ecotourism sector is one of the fastestgrowing in the international tourism market ... and diversify economic activity in particular places (Tisdell, 2003; Yacob et al., 2007). at establishments that have lower prices but too frequently run These inventories are capital just like Economic Activity; 2. Ontario on some particular date was, say, 1.2 million. yielded by capital. Private Investment Expenditure (I) 6. produce a flow of leisure for himself. b. and comfortably from point A to point B. capital) produced a flow of output at the rate of 640 quarts per For Note also that the flow of lumber obtained from cutting down Land refers to all naturally occurring resources used to produce goods and services. 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