Economy

Definition

The economy refers to the system of production, distribution, and consumption of goods and services within a society or country. It encompasses all activities related to the creation and exchange of wealth.

Related terms

Capitalism: An economic system based on private ownership of resources and means of production, where individuals pursue their own self-interests.

Command Economy: An economic system where central authorities (usually the government) make decisions regarding production, distribution, and consumption.

Market Economy: An economic system where decisions about production, distribution, and consumption are made through voluntary exchanges in markets driven by supply and demand.