Economy refers to the system by which goods and services are produced, distributed, and consumed within a society. It encompasses various activities related to the management of resources, including labor, capital, and natural resources, to meet the needs and wants of individuals and communities. Economies can be classified as market economies, where decisions are driven by supply and demand, or planned economies, where government controls production and distribution. The term also encompasses concepts such as economic growth, inflation, employment, and trade, and it influences the standard of living and overall well-being of the population. The study of economics is divided into microeconomics, which focuses on individual agents and markets, and macroeconomics, which looks at the economy as a whole. Overall, the economy reflects the intricate interdependencies and relationships among individuals, businesses, and governments in the pursuit of prosperity and resource allocation.