Question

In 60 words or fewer, write what you think the term economy means. Think about how money fits into your definition.

Answer 1

The economy is a system involving production, distribution, and consumption of goods and services, with money playing a central role in its operations.

Step-by-step explanation:

An economy is a system that encompasses the production, distribution, and consumption of goods and services within a society. It involves how money acts as a medium of exchange, store of value, and unit of account.

Economists analyze the demand and supply and how they interact within a market to determine price and quantity of goods and services. Fiscal policy and liquidity help manage this economic activity.

Answer 2

Step-by-step explanation:

An economy is made up of every single activity that has to do with production, consumption, and the buying and selling of goods or rendering services.

In an economy there are combinations of market transactions and decisions made collectively or in hierarchy. Individuals, families, businesses, governments make up the decision-making process.

Money is the legal tender of an economy. It is the medium of exchange that an economy uses for transactions.