Economic activity refers to the activity of making, providing, purchasing and selling goods or services. Economic activities exist at all levels within a society. Human beings are engaged in various kinds of economic activities. In general all the economic activities are broadly categorised into Primary, Secondary and Tertiary activities. The Tertiary activities are further sub divided into Quaternary and Quinary activities. Let us first understand the meaning and concept of the different categories of economic activities.
Types of Economic system:
1. Subsistence economy: Goods and services which are created for the use of the producers and their kinship groups.
2. Commercial economy: Goods and services which are produced mainly for sale. Market competition is the primary force determining the production and distributions.
3. Planned economy: Goods and services created are controlled by government agencies. Supply and price are controlled by the state. It was practiced earlier by the Communist controlled societies.