An economy of a country is the system that encompasses all activities related to the production, consumption, and exchange of goods and services within that country. It determines how scarce resources—such as land, labor, and raw materials—are allocated to meet the needs and wants of its people
. Key aspects of a country's economy include:
- Production: How goods and services are created using available resources.
- Consumption: How these goods and services are used by individuals, businesses, and the government.
- Distribution and Trade: How goods and services are exchanged within the country and with other countries.
The size and health of an economy are often measured by indicators such as Gross Domestic Product (GDP), which reflects the total market value of all final goods and services produced over a specific period
. Economies can be organized differently, ranging from market-based systems where supply and demand dictate production, to command-based systems where the government controls production decisions
. In summary, a country's economy is the complex, interconnected system of labor, production, consumption, and trade that shapes how resources are used to satisfy the population's needs and wants, influencing overall living standards and economic growth
