Economics is the process by which you allocate your limited resources in order to satisfy your unlimited desires. These resources include not only tangible goods and services but also the time and skills of the people who produce them.
The economy is defined by the production, distribution, and consumption of goods and services. The goal of economics is to determine how these resources should be allocated whether through government intervention or market forces.
Purpose of the economy: to provide the necessary resources for society
The purpose of an economy is to provide goods and services to those who need them. In fact, this is the definition of the term “economy” that most economists use. It is a system that allows people to exchange services or products with each other.
An economy works best when there are multiple ways for people to acquire these goods and services.