economy

(redirected from token)
Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia.

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 classic literature ?
Heaven forbid that I should covet your riches; I will rather add to them, for I desire that you shall not leave my kingdom without some tokens of my good will.
By this token will I go to London town," quoth he, "and ere I part with the Queen's pledge, may the hand that bears it be stricken off at the wrist
Sporting with her infamy, the lost and desperate creature had embroidered the fatal token in scarlet cloth, with golden thread and the nicest art of needlework; so that the capital A might have been thought to mean Admirable, or anything rather than Adulteress.
Leave no black plume as a token of that lie thy soul hath spoken
However, on the third night the soldier carried away one of the golden cups as a token of where he had been.
The vicomte bowed and smiled courteously in token of his willingness to comply.
His youthful confidence in the perpetuity of poetry, of the poetical interests in life, creed-less as he may otherwise seem to be, is, we think, a token, though certainly an unconscious token, of the spontaneous originality of his muse.
My free hand I held above my head, palm out, in token of the peacefulness of my mission.
The place breathed the very atmosphere of decay and death, and the imbecile ancient, curing in the smoke the token of death, was himself palsiedly shaking into the disintegration of the grave.
The Ass, thinking that they bowed their heads in token of respect for himself, bristled up with pride, gave himself airs, and refused to move another step.
They then fell upon each other's neck and wept scalding rills down each other's spine in token of their banishment to the Realm of Ineffable Bosh.
Many had brought some parting token by which he should remember them.