Answer to Question 1:
What do economists mean by the term economic activity?
Economic activity is the process by which human, physical and
technological capital in the community is used to produce and
distribute a flow of goods and services that individuals in the
community can enjoy. The concern is with what is produced, to
whom it is distributed, how the community benefits from this
process, and how the system might be changed to increase the
flow of benefits obtainable from the given stock of capital.
Return to Lesson