Economy

An Economy is a social system composed of economic transactions (production, distribution and consumption of goods and services) within a particular societal region.

• Context:
  • It can range from being a Household Economy to being a Regional Economy to being a National Economy to being a Supra-National Economy to being a World Economy.
  • It can range from being a Competitive Economic System (such as a winner-take-most economic system) to being a Collaborative Economic System.
  • It can range from being a Market-based Economy to being a Centrally-managed Economy.
  • It can range from being a Lightly Regulated Economy to being a Tightly Regulated Economy.
  • It can range from being a Well Regulated Economy to being a Poorly Regulated Economy.
  • It can range from being a Healthy Economy to being a Stable Economy to being an Unstable Economy to being a Failed Economy.
  • It can range from being a Human-based Economy to being an Automation-based Economy.
  • It can (typically) be associated with a Labor Population.
  • It can be expressed in Economic Policy.
  • It can be modeled by an Economic System Theory.
  • It can influence the Means of Production.
  • It can make use of a Monetary System, a Barter System and/or a Debt System.
  • …
• Example(s):
  • based on Economic Regions, such as: a U.S. Economy, Canada Economy.
  • based on the type of product, such as: an Agrarian Economy, Industrial Economy, Information Economy (a Digital Economy, Knowledge Economy, [or [Virtual Economy]]).
  • based on Economic Ideology, such as: a Capitalistic Economic System, Socialist Economic System.
  • based on Industry, such as: a Food Industry, Security Industry, Healthcare Industry, Retail Industry, Tourism Industry, ...
  • …
• Counter-Example(s):
  • a Political System.
  • a Legal System.
  • a Moral System.
  • a Cultural System.
• See: Economic Input, Economic Output, Economic System Productivity, City Economy, Currency, Good (Economics), Demand, Supply (Economics), Barter, Medium Of Exchange.

---

---

References

2021

• (Wikipedia, 2021) ⇒ https://en.wikipedia.org/wiki/economic_system Retrieved:2021-2-22.
  • An economic system, or economic order, is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area. It includes the combination of the various institutions, agencies, entities, decision-making processes and patterns of consumption that comprise the economic structure of a given community. An economic system is a type of social system. The mode of production is a related concept. All economic systems must confront and solve the three fundamental economic problems: * What kinds and quantities of goods shall be produced. * What and how much economic resources will be used. * How will the output be distributed. The study of economic systems includes how these various agencies and institutions are linked to one another, how information flows between them, and the social relations within the system (including property rights and the structure of management). The analysis of economic systems traditionally focused on the dichotomies and comparisons between market economies and planned economies and on the distinctions between capitalism and socialism. Subsequently, the categorization of economic systems expanded to include other topics and models that do not conform to the traditional dichotomy. Today the dominant form of economic organization at the world level is based on market-oriented mixed economies. An economic system can be considered a part of the social system and hierarchically equal to the law system, political system, cultural and so on. There is often a strong correlation between certain ideologies, political systems and certain economic systems (for example, consider the meanings of the term “communism"). Many economic systems overlap each other in various areas (for example, the term “mixed economy” can be argued to include elements from various systems). There are also various mutually exclusive hierarchical categorizations.

2013

• http://en.wikipedia.org/wiki/Economic_system
  • … Economic systems is the category in the Journal of Economic Literature classification codes that includes the study of such systems. One field that cuts across them is comparative economic systems. Subcategories of different systems there include:
    • planning, coordination, and reform
    • productive enterprises; factor and product markets; prices; population
    • public economics; financial economics
    • national income, product, and expenditure; money; inflation
    • international trade, finance, investment, and aid
    • consumer economics; welfare and poverty
    • performance and prospects
    • natural resources; energy; environment; regional studies
    • political economy; legal institutions; property rights.

2013

• (Wikipedia, 2013) ⇒ http://en.wikipedia.org/wiki/economy Retrieved:2013-12-26.
  • An economy or economic system consists of the production, distribution or trade, and consumption of limited goods and services by different agents in a given geographical location. The economic agents can be individuals, businesses, organizations, or governments. Transactions occur when two parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency.

    In the past, economic activity was theorized to be bounded by natural resources, labor, and capital. This view ignores the value of technology (automation, accelerator of process, reduction of cost functions), and creativity (new products, services, processes, new markets, expands markets, diversification of markets, niche markets, increases revenue functions), especially that which produces intellectual property.

    A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions.

    A market-based economy is where goods and services are produced without obstruction or interference, and exchanged according to demand and supply between participants (economic agents) by barter or a medium of exchange with a credit or debit value accepted within the network, such as a unit of currency and at some free market or market clearing price. Capital and labor can move freely to any area of emerging shortage, signaled by rising price, and thus dynamically and automatically relieve any such threat. Market based economies require transparency on information, such as true prices, to work, and may include various kinds of immaterial production, such as affective labor that describes work carried out that is intended to produce or modify emotional experiences in people, but does not have a tangible, physical product as a result.

    A command-based economy is where a central political agent commands what is produced and how it is sold and distributed. Shortages are common problems with a command-based economy, as there is no mechanism to manage the information (prices) about the systems natural supply and demand dynamics.

---