Economy refers to the system of production, distribution, and consumption of goods and services within a society or geographic region. It encompasses various activities related to how resources are allocated, how businesses operate, how money flows, and how individuals and organizations make choices regarding goods and services. Economies can be classified in different ways, such as by their structure (capitalist, socialist, mixed), size (local, national, global), and the level of development (developed, developing, underdeveloped).

Key components of an economy include consumers, producers, markets, and government policies. Economies are influenced by various factors such as supply and demand, competition, labor markets, and technological advancements. The performance of an economy is often assessed using indicators like gross domestic product (GDP), unemployment rates, inflation, and trade balances. An economy plays a crucial role in the overall well-being of its populace and is impacted by both external factors (such as international trade) and internal factors (like government regulation and individual behavior).