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Invest 10 minutes a day for 30 days to grow your understanding of Economy; which is the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated. This is also known as an economic system.
The economy encompasses all activity related to production, consumption and trade of goods and services in an area. The economy applies to everyone from individuals to entities such as corporations 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. For this reason, no two economies are the same.
Market-based economies allow goods to flow freely through the market, according to supply and demand. This type of economy has a tendency to naturally balance itself: as the prices in one sector for an industry rise due to demand, the money and labor necessary to fill that demand filter to the places where they are needed.
Command-based economies are dependent on a central political agent, which controls the price and distribution of goods. Supply and demand cannot play out naturally in this system because it is centrally planned, so imbalances are common.
Green economies depend on renewable, sustainable forms of energy. These systems operate with the end goal of cutting carbon emissions, restoring biodiversity, relying on alternative energy sources and generally preserving the environment. This report from the United Nations Environment Program, "Examples of the Green Economy in Practice," gives a few examples of societies that are embracing this system.
The study of the economy and the factors affecting the economy is called economics.
Economics is a broad term referring to the scientific study of human action, particularly as it relates to human choice and the utilization of scarce resources. Economic analysis often progresses through deductive processes, much like mathematical logic, where the implications of specific human activities are considered in a "means-ends" framework.