Economy

An economy is a geographical region that engages in the production, distribution, and trading of commodities and services, in addition to their consumption. In a broader sense, it is understood to be a social domain that places an emphasis on the activities, discourses, and material manifestations that are linked with the production, use, and management of finite resources. An economy is a collection of processes, the primary components of which include that economy's culture, values, education, technical development, history, social organisation, political structure, legal systems, and natural resources. These variables are all intertwined. These elements provide context and substance while also determining the circumstances and boundaries under which an economy operates. To put it another way, the economic realm is a social domain that consists of interconnected human acts and transactions, and it does not exist in isolation.

Individuals, corporations, organisations, and even governments all have the potential to act as economic actors. Transactions in the economy take place when two persons or organisations come to an agreement on the value or price of the item or service being exchanged. This is often done using a particular currency. However, just a tiny portion of the whole economic sphere is comprised of monetary transactions.

Production, which makes use of labour and capital as well as natural resources, is the engine that drives economic activity. Technology, innovation (new products, services, processes, expanding markets, diversification of markets, niche markets, increases revenue functions), such as that which produces intellectual property, and changes in industrial relations have all contributed to its development over the course of time. These factors have caused it to shift in a variety of ways (most notably child labour being replaced in some parts of the world with universal access to education).