Category: Economy

Economy refers to the system of production, distribution, and consumption of goods and services within a society or region. It encompasses how resources—such as labor, capital, and natural assets—are allocated to meet the needs and desires of individuals and businesses. Economies can be classified into types: market, command, mixed, or traditional, depending on how decisions are made. Key components include supply, demand, trade, and financial systems. Economic health is measured through indicators like GDP, inflation, and employment rates. A strong economy fosters growth, stability, and improved living standards, while challenges like recession or inequality can disrupt societal progress.