The economy is a social space that emphasizes the practices, talks, and material expression related to the production, use, and management of resources. It includes all activity related to production, consumption, and trade of goods and services in an area, state or country. It applies to everyone from an ordinary man to companies and governments. The economy of a particular region or country is governed by its culture, laws, history, and geography, among other factors, and it evolves due to necessity.
It helps to seek and solve the problem of scarcity (in state of shortage), which is when the need for goods exceeds the available supply. In other words, the economic domain is a social domain of human practices and their affairs. It is an arrangement of associations and organizations that either facilitate or plays a role in the production and distribution of products in society. However, Economy decide how assets will be divided among the members of society. Moreover, they decide the estimation of products and its service; and figure out what sorts of thing can be exchanged or traded for those goods.
It is how a society structures its financial framework is to a great extent. The political and legal structure of society will administer how wealth can be collected, how assets are distributed, and the way of competition allowed between various members in the economy. The goal of economic development is to improve the well-being of everyone, regardless of race, background or class.
There are four different types of Economic Systems; a traditional economy, a market economy, a command economy, and a mixed economy. Each type of economy has its own strengths and weaknesses. Building up economies requires strategies that benefit the entire population, and not just a single segment, company or organization. At its core, this is what economic development is all about, whether it’s part of the government, private business or anywhere in between.