What is economy?

Today let's get to know about economy. I remember the definition that i learned in my school days for economy. Economy can be defined as a framework within which all the economic activities of a country can be described is called the economy.

It is not difficult to see the the same country may have to be described in different ways for different purposes. For example, our purpose may be to talk about the people of a country and their activities in terms of their physical environment and location. In that case our treatment will be as in a geography book.

But if we are thinking of the political life of the people and of forms of government, we would book at it from quite another viewpoint, one that we find in books on civics and political science. We shall describe economic activities later in the blog in detail.

The economic activities are those activities of the people that determine what goods will be produced in the country, how services like transport, storage, marketing, banking and insurance will be provided, and how much of what is produced will be consumed now and how much will be stored for the future. The economic activities will also determine how and among whom the goods and services that are produced in the country would be shared.