Economy refers to the system by which goods and services are produced, distributed, and consumed in a society. It involves the management of resources, such as labor, capital, and natural resources, to create wealth and improve living standards.
Economists study how individuals, businesses, and governments make decisions about how to allocate resources in order to maximize their benefits. This involves analyzing the costs and benefits of different options and considering how various factors, such as supply and demand, affect the economy.
The economy is constantly changing, and economic growth is often seen as a key goal for governments and businesses. However, economic growth can also lead to challenges such as inequality, environmental degradation, and financial instability.
Overall, the study of economics is crucial for understanding how societies function and how to address the complex economic issues facing the world today.