Economy

The economy refers to the system by which goods and services are produced, distributed, and consumed within a society. It encompasses the various activities related to the management of resources, including labour, capital, and land, and involves the interactions between individuals, businesses, and government entities. Economies can be classified into different types, such as market economies, where supply and demand dictate prices, and planned economies, where government controls production and pricing. Key indicators of an economy’s performance include gross domestic product (GDP), employment rates, inflation, and trade balances. The economy plays a crucial role in determining the overall well-being and living standards of individuals within a country.