See the below image for the Economy explained diagram. What Is an Economy? An economy is the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated. The production and consumption of goods and services are used to fulfill the needs of those living and operating within the economy, which is also referred to as an economic system.
What is ‘Economy’. An economy is the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated. This is also known as an economic system. Next Up. Centrally Planned Economy. Political Economy. Market Economy.
Through depressions, wars, and other events, the world economy has continued to develop at an exponential rate. Starting at about $184 billion in the year 1 AC, the world’s GDP has risen to an astounding $120 trillion. However, while the world’s GDP is as high as it has ever been, the world economy still faces a number of issues.
Economy explained image
