Economy

Economic agents can be individuals, businesses, organizations, or governments. Economic transactions occur when two groups or parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency. However, monetary transactions only account for a small part of the economic domain.

Economic activity is spurred by production which uses natural resources, labor and capital. It has changed over time due to technology, innovation (new products, services, processes, expanding markets, diversification of markets, niche markets, increases revenue functions) and changes in industrial relations (most notably child labor being replaced in some parts of the world with universal access to education).

Etymology

The word economy in English is derived from the Middle French's yconomie, which itself derived from the Medieval Latin's oeconomia. The Latin word has its origin at the Ancient Greek's oikonomia or oikonomos. The word's first part oikos means "house", and the second part nemein means "to manage".^[7]

The most frequently used current sense, denoting "the economic system of a country or an area", seems not to have developed until the 1650s.^[8]

History

Earliest roots

As long as someone has been making, supplying and distributing goods or services, there has been some sort of economy; economies grew larger as societies grew and became more complex.

The Babylonians and their city state neighbors developed forms of economics comparable to currently used civil society (law) concepts. They developed the first known codified legal and administrative systems, complete with courts, jails, and government records.[10]

The ancient economy was based primarily on

In Chinese economic law, the huge cycle of institutional innovation contains an idea. Serving a non-market economy promotes a firm's tenure that is legally guaranteed and protected from bureaucratic opportunities.^[14]

Middle Ages

In the Middle Ages, what is now known as an economy was not far from the subsistence level. Most exchange occurred within

The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, and transport had a profound effect on the socioeconomic and cultural conditions starting in the United Kingdom, then subsequently spreading throughout Europe, North America, and eventually the world.^[16] The onset of the Industrial Revolution marked a major turning point in human history; almost every aspect of daily life was eventually influenced in some way. In Europe wild

20th century

The contemporary concept of "the economy" wasn't popularly known until the American Great Depression in the 1930s.^[17]

After the chaos of two

With

The economy may be considered as having developed through the following phases or degrees of precedence:^[according to whom?]

• The ancient economy was mainly based on subsistence farming.
• The
  industrial revolution phase lessened the role of subsistence farming, converting it to more extensive and mono-cultural forms of agriculture in the last three centuries. The economic growth took place mostly in mining, construction and manufacturing industries. Commerce
  became more significant due to the need for improved exchange and distribution of produce throughout the community.
• In the economies of modern
  consumer societies phase there is a growing part played by services, finance, and technology—the knowledge economy
  .

In modern economies, these phase precedences are somewhat differently expressed by the three-sector model:^[26]

• raw materials, such as corn, coal, wood and iron
  .
• textiles
  into clothing.
• banking
  .

• the public sector or state sector (which usually includes: parliament, law-courts and government centers, various emergency services, public health, shelters for impoverished and threatened people, transport facilities, air/sea ports, post-natal care, hospitals, schools, libraries, museums, preserved historical buildings, parks/gardens, nature-reserves, some universities, national sports grounds/stadiums, national arts/concert-halls or theaters and centers for various religions).
• the private sector or privately run businesses.
• the voluntary sector or social sector.^[27]

Indicators

The

The study of economics are roughly divided into macroeconomics and microeconomics.^[37] Today, the range of fields of study examining the economy revolves around the social science of economics,^[38][39] but may also include sociology,^[40] history,^[41] anthropology,^[42] and geography.^[43] Practical fields directly related to the human activities involving production, distribution, exchange, and consumption of goods and services as a whole are business,^[44] engineering,^[45] government,^[46] and health care.^[47] Macroeconomics is studied at the regional and national levels, and common analyses include income and production, money, prices, employment, international trade, and other issues.^[48]

See also

• Economic democracy
• Economic history
• Economic system
• Social economy
• Solidarity economy

Notes

References