3 Main Economic Activities

In life, humans cannot be separated from the activities of consumption, production and distribution of goods and services. These three are known as the main economic activities, keeping in mind that these activities cannot be separated from the daily life of human beings and are done to maintain their existence.

For more information, see the explanation of the three activities in the following discussion.

1. Consumption

Every day you do consumption activities. While studying, you use a notebook, textbook, and pen. Before going to school, you must make time for breakfast. All of this shows that an example of your activity applies consumption.

You also consume while you sleep, as you use blankets and bedding as your sleeping pad.

Thus, consumption, using commodities or reducing the use value of commodities, is the activity of humans both directly and indirectly with the aim of meeting their daily needs.

This simply means reducing the value of goods at once and no longer being used, for example the food we are already eating can no longer be eaten.

As indirect means gradually reducing the value of goods, such as clothes or cars that can be used for a long time so that the value of the goods is not used at once but still used multiple times Can.

2. Production

Production comes from English, which means to produce or to produce. In economics, the term production means that human activities produce goods / services or add value to goods or services.

Production does not simply create new goods, but also adds value to existing goods so as to be able to fully meet human needs.

The conclusion is that production is a human activity that produces or adds value to goods / services.

3. Distribution

Distribution is the activity of distributing or distributing goods or services from producers to consumers. One of the uniqueness of distribution is that it is able to provide benefits to all actors of economic activity, both producers, consumers, distributors, and the community itself.