Economic activity of a person

Man's economic activity is inherently an expedient activity, i.e. The efforts made by people are based on a well-known calculation, and their direction has the character of satisfying human needs.

The economic activity of a person affects his life activity, because in the process of management people, on the one hand, spend energy, resources, etc., and on the other - make up for life expenses. With this state of affairs, the economic entity (man in economic activity) has to strive to rationalize his own actions. It is possible to act rationally only if the costs and benefits are correctly compared, which, however, does not guarantee that there are no mistakes in making decisions that are required by the economic activity of a person.

The economic activity of man in the biosphere is a very complex and confusing complex, consisting of phenomena and processes of various kinds. Theoretical economy in this aspect are four stages, represented by actual production, distribution, exchange and consumption.

Production activities are processes, as a result of which material and spiritual goods are created, which are necessary for mankind to exist and develop.

Distribution is a process during which the shares (quantity, proportions) are determined, according to which each business entity participates in the creation of the produced product.

Exchange is a process of moving material goods from one business entity to another. In addition, exchange is a form of social communication between producers and consumers.

Consumption is inherently a process of using production results to meet any needs. Each of the stages of economic activity is in interrelation with the rest, and they all interact with each other.

The characterization of the interconnection of the stages of economic activity requires an understanding of the fact that any production is a social and continuous process. Constantly repeating, production develops - from the simplest forms to modern production. Although these types of production seem completely dissimilar, the general moments that are inherent in production as such, can still be identified.

Production is the foundation of life and the source of the progressive development of the society in which people exist, the starting point of economic activity. Consumption is the end point, and distribution and exchange are the concomitant stages that link production and consumption. While production is the primary stage, it serves only consumption. Consumption creates the ultimate goal, as well as the motives of production, as in the consumption of products destroyed, it has the right to dictate the production of a new order. In the event that the need is satisfied, it generates a new need. It is the development of needs that serves as the driving force behind which the production develops. At the same time, the emergence of needs is conditioned by production - when new products appear, there is an emerging need for these products and their consumption.

How production depends on consumption, so distribution and exchange depend on production, since in order to distribute or exchange anything, it is necessary that this something be produced. At the same time, distribution and exchange are not passive with respect to production, and are capable of having the opposite effect on it.