acutally electricity is movement of electons but why no electricity is produced when an electron moves inside an atom?
First off it depends on which model you use.] The shrodinger model atom has an electron as a standing wave rounf a neucleus. The Bohr model atom has discrete electrons moving in orbit. So you could argue you do have electricity flowing round the neucleus. The real question is why dont you have magnetism? Well in some circumstances you do - thats how an MRI scanner works. So you actually do have both electricity and magnetism on the quantum scale.
In a metal say, most of the electrons are in orbit around atomic nuclei. But some electrons have escaped from their atoms and are free to move around - they are called the conduction electrons. When you apply a voltage between the ends of a piece of metal, only the conduction electrons flow - which is what an electric current is. Electrons enter one side of the metal and leave from the other side, flowing around the circuit. The orbiting electrons have nothing to do with the current flowing through the metal.
The short answer to your question is, electricity (electric current) does exist. Electric current is movement of electrons and this does exist within atoms. Changing electric current creates magnetic fields and atoms do have magnetic fields. However, normally the direction of individual current and magnetic fields is in any direction and these cancel out in a material. Magnetic materials are exceptions to this where the magnetic field does line up a little. When atoms form conducting solids, the electrons can be shared amongst the atoms and, if a difference in electric potential is applied across the solid a flow of electrons in a common direction happens - that is what you mean by electricity. The electric potential (in the UK) is held at about 240V (A.C.) and is created by the power stations. When this is applied across a device (e.g. a light bulb) current flows through the bulb to complete the circuit. An electric current does not mean energy is used up however - superconductors can have electric currents moving within them without any loss of energy. It's only if a material has a resistance that energy is lost and has to be replaced. So in an atom, there is no resistance and the electric currents can continue without problem (sort of anyway - quantum mechanics comes in to play here).
