Question

What are basic economic activities of an economy? What impact do they have on one

another? (See Lesson - 6​

Answer 1

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Production, consumption and capital formation are the basic economic activities of an economic.

HOPE IT HELPS U !!

Answer 2

Answer:

Consumption, and Capital

Formation: An economy represents the sum total of economic activities in a country. The basic function of every economy is to provide a living to the people for satisfaction of their wants.

Explanation:

Impact:-

Capitalism

Capitalism generally features the private ownership of the means of production (capital) and a market economy for coordination. Corporate capitalism refers to a capitalist marketplace characterized by the dominance of hierarchical, bureaucratic corporations.

Mercantilism was the dominant model in Western Europe from the 16th to 18th century. This encouraged imperialism and colonialism until economic and political changes resulted in global decolonization. Modern capitalism has favored free trade to take advantages of increased efficiency due to national comparative advantage and economies of scale in a larger, more universal market. Some critics[who?] have applied the term neo-colonialism to the power imbalance between multi-national corporations operating in a free market vs. seemingly impoverished people in developing countries.

Mixed economy

There is no precise definition of a "mixed economy". Theoretically, it may refer to an economic system that combines one of three characteristics: public and private ownership of industry, market-based allocation with economic planning, or free markets with state interventionism.

In practice, "mixed economy" generally refers to market economies with substantial state interventionism and/or sizable public sector alongside a dominant private sector. Actually, mixed economies gravitate more heavily to one end of the spectrum. Notable economic models and theories that have been described as a "mixed economy"