Question

Mention the three important economic activities and show their inter-relationship diagrammatically

Answer 1

Answer:

Production, consumption, and the formation of capital are called an economy's fundamental financial activities.

Explanation:

• In the manufacturing of products and services, scarce resources are used with the aim of fulfilling our requirements and desires.
• A population can assist or hinder the rate of economic development by amount.
• To keep up with economic development, an advanced country with low population density and a small proportion of employable individuals requires an rise in population.

Answer 2

Explanation:

For this purpose, all economies perform some basic activities which are grouped under three heads, namely, production, consumption and investment, as explained below. These basic economic activities are also called three vital processes of the economy because they are vital for the economy to survive and grow.