Answer: An economy is a complex system that involves the production, distribution, and consumption of goods and services within a region. It involves producers, customers, markets, and governments. The economy determines how resources and capital are allocated. There are different types of economic systems based on the governing power.
The economy is influenced by many factors, including the business cycle (also known as boom and bust), the government’s budget, capital, debt, globalization, growth, inflation, macroeconomics, microeconomics, recession, and the stock market. The study of economics helps us understand how society uses resources.