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What is the purpose of economic activity?
To use scarce resources to produce goods/services that satisfy needs and wants, improving material and non-material living standards.
Define material living standards.
Material living standards refer to an individual’s economic wellbeing, measured by their access to goods and services,
Define non-material living standards.
Non-material living standards relate to people’s intangible quality of life, irrespective of their income
Distinguish market vs non-market activity.
Market activity is paid work captured in GDP; non-market activity is unpaid (e.g. volunteer work, household chores) not counted in GDP.