👉 The economy refers to the system of production, distribution, and consumption of goods and services within a society or region. It encompasses the allocation of resources, labor, capital, and technology to meet the needs and wants of individuals and businesses. Key components include supply and demand dynamics, market structures (such as perfect competition, monopoly, and oligopoly), economic policies (fiscal and monetary), inflation, unemployment, and international trade. Economies can be classified into types like capitalist, socialist, and mixed economies, each with distinct approaches to resource management and wealth distribution. The goal of an economy is to maximize efficiency and welfare while addressing social and environmental challenges.
