What is the economy?
The economy is an essential part of our lives - impacting jobs, housing market, and so much more. Due to that, it is important to make sure
Definition:
An economy is a complex system of interrelated production, consumption, and exchange activities, which ultimately determine how resources are allocated among participants. The production, consumption, and distribution of goods and services combine to fulfill the needs of those living and operating within the economy.
An economy can encompass a nation, a region, a single industry, or even just one family.
Key Takeaways
An economy is a system of interrelated production and consumption activities that ultimately determine the allocation of resources within a group.
The economy is the most important aspect of a nation or country.
The production and consumption of goods and services fulfills the needs of those living and operating within an economy.
Market-based economies, also called free market economies, are self-regulated, allowing goods to be produced and distributed in response to demand from consumers.
Command-based economies are regulated by a government body that determines the goods that are produced, their quantities, and their prices.
In the modern world, very few economies are purely market-based or command-based. They are usually a mix between the two.
Source: https://www.investopedia.com/terms/e/economy.asp
