Question

what are basic economic activities of any economy? what impact do they have on one another

Answer 1

"The Court's definition of economic activity is breathtaking. It defines as economic any activity involving the production, distribution, and consumption of commodities.... (D)epending on the level of generality, any activity can be looked upon as commercial — the Court's definition of economic activity ... threatens to sweep all of productive human activity into federal regulatory reach."

Types

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"

Answer 2

The basic economic activities are:

1.Production of product / goods / services.

2.Consumption of the produced items

3.Capital Formation

Any good that is produced is either consumed or used in terms of capital formation. Also, all the three activities are interdependent to (or) impacted on one other.

Any increase in any of the three activity causes the other two to increase spontaneously. When capital formation is high, then there will be an increase in production. Hence, there will be an increase in the level of consumption as well. And in turn, results in high capital formation.

Vice-versa is also true.