What Are The 4 Types Of Economic Activity?
Economic activities are often divided into four major types. These types are primary, secondary, tertiary and quaternary activities.
To talk about the four types of economic activity, first it is necessary to define which economic activity. Economic activity is most easily defined as the production, supply, purchase or sale of various goods or services. It is often mentioned in the context of economic geography and deals with the production, consumption and exchange of goods and services based on different spatial variations of the surface of our planet.
Economic activities exist in almost every area of our society. The easiest way to explain this is to consider all activities involving money or product exchange as economic activities. Of course, this means that there are also non-economic activities. These activities do not involve any change and can range from helping a friend to work to praying to the church. Economic activities are often divided into four major types. These types are primary, secondary, tertiary and quaternary activities.
When we talk about primary activities, we are talking about activities related to obtaining natural resources directly from nature. Collection, farming, hunting, fishing, forestry and many other activities are considered primary economic activities. They involve the trade of goods in various ways, so it makes them a vital part of the economy. These are mostly outdoor activities in nature. For this reason, people engaged in these activities are often called red-collar employees.
Secondary activities are a little more complicated. When we classify an economic activity as a secondary activity, it means that it involves the process of adding value to products by changing products. These activities take existing products and change them in a variety of ways, adding extra value to them. The simplest way to explain these activities is to say that it mostly involves manufacturing industries. Therefore, everything from processed foods to clothing belongs to secondary economic activities.
The activities in this group are related to the provision of various services. Everything from clerks to barbers and auto mechanics falls into this group. These can most easily be described as personal and commercial services. Most of these services are not a physical product by nature, but a service that we cannot achieve by ourselves. People working in tertiary activities are specialists in certain areas other than those generally accepted as shared knowledge. We call workers in these activities pink-collar workers.
This group of activities includes all that is provided in private settings. A good example of this would be health services that we can only get in hospitals. Some other examples include hotels that provide us with hospitality or schools that provide us with education. Defining these activities is the most difficult because they cover a wide variety of things.
For example, theaters engage in quaternary activities as they provide entertainment services. We call workers engaged in quaternary activities as white-collar workers. Many professions today fall into this category, such as software personnel, legal advisors, financial advisors and much more. These activities can be considered as an advanced form of service with a high level of competence in communication, requiring highly specific knowledge and skills.