Economy

Economy refers to the system through which goods and services are produced, distributed, and consumed within a society or geographical area. It encompasses all activities related to the management of resources, including labor, capital, and land, aimed at satisfying human wants and needs. Economies can be broadly categorized into various types, such as traditional, command, market, and mixed economies, depending on how decisions regarding production and consumption are made.

Economic activities are influenced by numerous factors, including government policies, consumer behavior, resource availability, and global trade dynamics. The performance of an economy is typically measured using indicators such as Gross Domestic Product (GDP), unemployment rates, and inflation. The study of economics, which includes macroeconomics (the economy as a whole) and microeconomics (individual markets and behaviors), seeks to understand how systems operate and how to improve efficiency and welfare within them. Overall, the economy plays a crucial role in shaping the standard of living, quality of life, and overall prosperity of a population.