ECONOMY

The economy refers to the production, distribution, and consumption of goods and services within a region or country.

KEY COMPONENTS OF THE ECONOMY

• Gross Domestic Product (GDP): Measures the total value of goods and services produced within a country.
• Employment and Unemployment: Indicates the health of the labor market and the availability of job opportunities.
• Inflation: Refers to the increase in prices of goods and services over time.
• Consumer Spending: Drives economic growth as individuals purchase goods and services.

TYPES OF ECONOMIC SYSTEMS

Market Economy: Production and distribution determined by supply and demand, with minimal government intervention.

Command Economy: Government controls the production and distribution of goods and services.

Mixed Economy: Combination of market and command economies, with varying degrees of government intervention.

economic challenges

• Economic Inequality- Unequal distribution of wealth and income.
• Economic Cycles- Periods of expansion and contraction, leading to recessions or economic downturns.
• Globalization- Impact of global economic interdependence and competition.
• Technological Disruption- Disruption of traditional industries due to technological advancements.