Economy refers to the system by which a society produces, distributes, and consumes goods and services. It encompasses all the activities related to the management and utilization of resources, including labor, capital, and natural resources, to meet the needs and wants of individuals and organizations. The economy is characterized by various factors such as production, trade, inflation, employment, and economic growth. It is influenced by factors like government policies, market forces, technological advancements, and consumer behavior. Economies can be categorized into different types, including traditional, command, market, and mixed economies, each with its own strengths and weaknesses.