What is an economy? Every member of society should understand

It is expedient to consider the economy both from the position of economic entities united by types of activity in certain sectors, and as a scientific discipline that studies the management process.

So, from the position of business entities there are two main definitions of the economy.

First, what is the economy, is defined as the aggregate of relations between actors in productive activities, distribution and consumption of its results.

The economy is constantly present in everyday life. Whether it's a worker at a factory, a machine tool, or a pensioner who buys food from a store - all these people are subjects of economic relations and carry out activities that are related to the economy.

As follows from the definition, the economy is reflected in the following stages:

- production, which involves the creation of goods, products and the performance of certain works or services;

- distribution - the exchange between the results of production and money, or another type of product;

- consumption shows the use of the final result of production.

It is these stages that constitute the cycle of production, in which the main figure is a person who actively influences other people and the environment to create the necessary living conditions for himself.

The second definition shows that such an economy as an economic complex that forms certain industries by type of production or non-productive sphere. The stages of economic production occur on different scales and with different actors. So, it is possible to single out the microeconomics, which is determined at the level of specific enterprises, families and people, a macroeconomy carried out at a more global level, and the world economy.

The definition of what the world economy is will be paid attention later.

So, the general economic complex of any country consists of certain industries that are characterized by the unity of products or technological processes, namely:

- the production sphere in which the subjects are engaged in material production (agriculture, industry, construction, transport, etc.);

- non - productive sphere, creating information, services and spiritual product (culture, education, art, consumer services and healthcare).

What is the economy - the definition of the third justifies this concept, as a scientific discipline, studying methods and methods of managing to meet the needs of people in the form of creating living blessings.

At least once in a lifetime, but each person faces a problem, what needs to satisfy first of all because of the limitation of available resources. Rational solutions to this choice and studying such discipline as the economy. Therefore, understanding what an economy is and knowing its basic laws makes it possible to carry out economic activity with the greatest benefit.

When you designate what is the economy, you can not fail to mention its types, such as market and non-market (command-administrative, planned, centralized). When managing in a non-market economy, the role of the organizer is assigned to the state.

The world economy is a multi-level and global economic system that unites the national economies of different countries, based on the international division of labor through the system of international economic relations.

In determining the world economy, four levels are distinguished: microeconomics, mesoeconomics, macroeconomics and the international level. The main is the macro level, which is responsible for organizing the functioning of national economies.