economy

(noun)

The system of production and distribution and consumption. The overall measure of a currency system.

Related Terms

Examples of economy in the following topics:

  • Mixed Economies

    • A Mixed Economy exhibits characteristics of both market and planned economies, with private and state sectors providing direction.
    • A mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies.
    • Most mixed economies can be described as market economies with strong regulatory oversight, in addition to having a variety of government-sponsored aspects .
    • Economies ranging from the United States to Cuba have been termed mixed economies.
    • Outline the plan behind and what governments provide in a mixed economy

  • Socialism and Planned Economies

    • There are few clear examples of purely socialist economies; nonetheless, many of the industrialized countries of Western Europe experimented with one form of social democratic mixed economies or another during the twentieth century, including Britain, France, Sweden, and Norway.
    • A planned economy is a type of economy consisting of a mixture of public ownership of the means of production and the coordination of production and distribution through state planning.
    • Economic planning in socialism takes a different form than economic planning in capitalist mixed economies.
    • Enrico Barone provided a comprehensive theoretical framework for a planned socialist economy.
    • The command economy is distinguished from economic planning.

  • Economic Indicators

    • Economic indicators are key statistics about diverse sectors of the economy that are used to evaluate the health and future of the economy.
    • An economic indicator is a statistic that provides valuable information about the economy.
    • If such a leading indicator rises, the economy is likely to expand in the coming year.
    • If it falls, the economy is likely to slow down.
    • If the average numbers of hours is on the rise, the economy will probably improve.

  • The Disadvantages of Mixed Economies

    • The disadvantages of mixed economies can be understood through examining criticisms of social democracy.
    • One disadvantage of mixed economies is that they tend to lean more toward government control and less toward individual freedoms.
    • While most modern forms of government are consistent with some form of mixed economy, given the broad range of economic systems that can be described by the term, the mixed economy is most commonly associated with social democratic parties or nations run by social democratic governments.
    • In contemporary terms, "social democracy" usually refers to a social corporatist arrangement and a welfare state in developed capitalist economies.
    • Examine the criticisms of social democracy as a vessel to understanding the disadvantages of mixed economies.

  • The Benefits of Mixed Economies

    • The US economy is best described as a mixed economy, because even though it strongly advocates free market principles, it relies on the government to deal with matters that the private sector overlooks, ranging from education to the environment.
    • This security helps maintain a stable economy.
    • The elements of a mixed economy have been demonstrated to include a variety of freedoms:
    • taxes and fees written or enforced with manipulation of the economy in mind
    • Outline the characteristics of a mixed economy that help to maintain a stable economy

  • Major Historical Developments in the Global Economy

    • The development of a global economy includes important highlights to understand when considering its current framework.
    • The development of this global economy has included a number of crucial highlights important to understand when considering the current framework of the global economy.
    • In many ways, this international competitive advantage in industry led the US to become the largest worldwide economy.
    • Synergy in a globalized economy is well supported by those EU initiatives.
    • Outline the trajectory of the development of the current global economy, specifically in the context of major historic developments

  • Service Economy Growth

    • Most of the U.S. economy is classified as services as of 2011 (agriculture 1.2%, industry 22.1%, services 76.7%).
    • As shown below, most of the U.S. economy is classified as services.
    • Services are said to be essential to increase productivity and growth and are considered salient to the development of knowledge-based economies.

  • The Asia-Pacific Economic Cooperation

    • The Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries (formally Member Economies) that seeks to promote free trade and economic cooperation throughout the Asia-Pacific region.
    • Established in 1989 in response to the growing interdependence of Asia-Pacific economies and the advent of regional economic blocs (such as the European Union) in other parts of the world, APEC works to raise living standards and education levels through sustainable economic growth and to foster a sense of community and an appreciation of shared interests among Asia-Pacific countries.
    • During the meeting in 1994 in Bogor, Indonesia, APEC leaders adopted the Bogor Goals that aim for free and open trade and investment in the Asia-Pacific by 2010, for industrialized economies and by 2020, for developing economies.
    • In 1995, APEC established a business advisory body named the APEC Business Advisory Council (ABAC), composed of three business executives from each member economy.
    • APEC is considering the prospects and options for a Free Trade Area of the Asia-Pacific (FTAAP), which would include all APEC member economies.

  • Balance of Trade

    • The balance of trade is the difference between the monetary value of exports and imports in an economy over a certain period.
    • The balance of trade (or net exports, sometimes symbolized as NX) is the difference between the monetary value of exports and imports of output in an economy over a certain period.
    • The cost of production (land, labor, capital, taxes, incentives, etc.) in the exporting economy vis-à-vis those in the importing economy
    • However, with domestic demand-led growth (as in the United States and Australia), the trade balance will worsen at the same stage in the business cycle as these economies will import additional raw materials and finished goods.

  • Elements of economic globalization

    • The importance of International trade lies at the root of a country's economy.
    • For example, China's economy is heavily dependent on the exportation of goods to the United States, and the United States customer base who will buy these products.
    • Foreign Direct Investment (FDI): According to the United Nations, FDI is defined as "investment made to acquire lasting interest in enterprises operating outside of the economy of the investor".
    • Migration can benefit developing economies when migrants who acquired education and know-how abroad return home to establish new enterprises.
    • However, migration can also hurt the economy through "brain drain", the loss of skilled workers who are essential for economic growth (Stiglitz, 2003).