economy

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Economy

The production, trade, and use of goods and services. The economy is the interaction between different actors, such as individuals, companies, and governments, in order to maximize the fulfillment of their needs through the use of scarce resources. The relationship between supply and demand is vitally important to how an economy operates, though economists disagree on exactly how.

There are a number of schools of thought within the study of the economy. Some major schools are classical economics, which considers the sources of production as well as the role of the Invisible Hand of the market, and Marxism, which considers the exploitation of labor by holders of capital. Other, modern schools of thought include Keynesianism, which emphasizes the role of demand as opposed to supply, and monetarism, which promotes the use of the free market and considers the role of money supply in economic growth. See also: Macroeconomics, Microeconomics.

economy

a country defined in terms of the total composition of its economic activities and the ultimate location of economic decision-making.

The total value of goods and services produced in any one year is called the gross domestic product. The contribution made to total output by the various subdivisions of the economy can be split down in various ways: for example, by broad sectors such as the primary sector (agriculture), the industrial sector (including manufacturing) and the tertiary sector (services); or by individual activities (brewing, coal-mining, etc.).

Economic decision-making in the economy may be either highly centralized or decentralized. In a centrally planned economy the State owns the means of production (except labour) and decides what goods and services are to be produced in accordance with a national plan. Resources are allocated between producing units, and final outputs between consumers by the use of physical quotas. At the other extreme, in a private enterprise economy (free market or capitalist economy) the means of production are held by individuals and firms. Economic decision-making is highly decentralized with resources being allocated through a large number of individual goods and services markets. It is the MARKET which synchronizes the decisions of buyers and sellers by establishing market prices which determine how much of a product will be produced and sold. In practice, a large number of countries, including the UK, are mixed economies with some goods and services being provided by private enterprise and others, typically public-utility type products such as postal services and railways, being supplied by the State. The precise mix of private enterprise and State activities to be found in particular countries, however, does vary substantially between the two extremes and is very much influenced by prevailing political ideologies. See INDUSTRY, STRUCTURE OF INDUSTRY, NATIONALIZATION VERSUS PRIVATIZATION.

economy

a country defined in terms of the total and composition of its economic activities. The total value of goods and services produced in an economy in any one year is called GROSS DOMESTIC PRODUCT (GDP). The contribution made to GDP by the various subdivisions or sectors of the economy can be viewed in a variety of ways: for example, either by broad sectors (the PERSONAL or household SECTOR, the CORPORATE or business SECTOR, the FINANCIAL SECTOR, PUBLIC (GOVERNMENT) SECTOR, the FOREIGN SECTOR), or by individual industries. See STRUCTURE OF INDUSTRY, ECONOMIC SYSTEM.
References in periodicals archive ?
The economic sectors refuse to implement the wage increase decision for several reasons, the most important of which is the inability of economic institutions to bear the burdens of this decision," said the statement which was published by AS SAFIR and other newspapers on Thursday.
The main objective of this forum is to promote academia-industry collaboration in business and the economic sector for mutual benefit of the two countries.
Power distribution upgradation could be provided to the economic sector under public as well as private ownership.
We will continue to work closely with the Higher Committee for upgrading the Islamic economic sector on invigorating its role in the national economy and support its objectives," he said.
Dairy criticized the representatives of the economic sector who quickly announced their rejection of the salary increases and warned that the decision will lead to "dangerous crises.
The Economic Sector called for encouraging the import of agricultural and industrial production inputs in line with the requirements of the Agricultural Revival, as well as developing the traditional mining sector together with accelerating the procedures of establishing a refinery for gold mining.
Meanwhile, the economic sector discussed the national operational plan for electricity power efficiency, which was presented by the Minister of Water Resources and Electricity, Usama Abdallah, who explained that the plan aims to providing abundant electrical power through a number of procedures carried out in the field of electricity generation.
On the other hand, the minister touched the great facilities offered by the Government and the Ministry of Industry and Commerce in particular to the economic sector in the country and to all investors from inside and outside Bahrain.
He also vowed support for the economic sector and business to optimize productivity and better cope with economic trends and developments.
He pointed to the efforts being exerted by the economic sector in Gedarif State and the committee for success of the agricultural sector to combat pests prior to the start of the summer season.
Representatives of the economic sector have rejected an eleventh-hour compromise to increase salaries, while labor unions have expressed reservations about the deal that has averted a nationwide strike planned for Wednesday, according to reports published in the Beirut media Wednesday.
Ali Ebrahim, Deputy Director-General for Economic Sector Development at DED, said: oThe number of licences issued is an indicator of the robust economic performance of Dubai.