Economy

The term “economy” refers to the system by which goods and services are produced, distributed, and consumed within a society. It encompasses all activities related to the management of resources, including labor, capital, and natural resources. The economy includes various sectors such as agriculture, manufacturing, and services, which work together to create wealth and facilitate trade. Economies can be classified into different types, such as market economies, planned economies, or mixed economies, based on their governing principles and how decisions regarding production and consumption are made. Key indicators of an economy’s performance include gross domestic product (GDP), unemployment rates, inflation, and balance of trade. Overall, the economy reflects how individuals, businesses, and governments interact in the pursuit of economic activity and well-being.