An economy encompasses all activities related to production, distribution, and consumption of goods and services within a society. It outlines how resources are allocated, jobs are created, and how wealth circulates among individuals and businesses.
Related terms
Market: A system where buyers and sellers interact to exchange goods and services for money, often determining prices through supply and demand.
Capitalism: An economic system where private individuals rather than the state own and control property and businesses, operating for profit in competitive markets.
Labor Force: The total number of people employed or seeking employment in an economy at any given time