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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Thus, the general objective of the article is to analyze the adjustment costs for the different economic sectors of the Colombian economy during the 1991-2015 period, considering the pattern of international trade.
Osseiran said that the researcher can dig up any data, collected between 2011 and the present, relating to an economic sector.
Al Mansouri reiterated that the Council will eventually pave the way for the establishment of a coalition of major UAE companies investing in key foreign markets across economic sectors as part of its mandate to drive investments of such companies in the designated markets.
"What is most important is that opportunities for growth exist in the majority of economic sectors of Cyprus," he said.
He showed a map of Turkey where various economic sectors were drawn up, along with each sector's batch of incentives for potential investors.
of Mongolia, examines the process of economic transition and development at the national level since Mongolia began the transition to a market economy, describes the Mongolian economic system in terms of different economic sectors and market components, explores outstanding issues of transition and development, and considers trends of national economic development.
IMPROVE, the sector skills council for UK food manufacturing, has welcomed a Welsh Government decision to include the food industry as one of the country's new priority economic sectors.
The Scottish Government has identified six key economic sectors, as well as the university sector, in its skills strategy, "Skills for Scotland": (1) financial and business services; (2) energy; (3) tourism; (4) life sciences; (5) food and drink; and (5) creative industries.
The meeting tackled many public issues concerning the work of the economic sectors and investment projects, means of supporting and boosting them and dealing with obstacles and difficulties.
The company is operating in various economic sectors. In particular, the holding includes several furniture factories.