It is advisable to consider the economy from the perspective of business entities, united by type of activity in certain industries, and as a scientific discipline that studies the process of managing.
So, from the perspective of business entities, there are two main definitions of the economy.
First, what is an economy, is defined as the totality of relations between actors in productive activity, distribution and consumption of its results.
The economy is constantly present in everyday life. Whether it is a worker at a factory, turning a part on a machine tool, or a pensioner purchasing food products in a store, all these people are subjects of economic relations and carry out actions that are related to the economy.
As follows from the definition, the economy is reflected in the following stages:
- production, which involves the creation of a product, product and the implementation of certain works or services;
- distribution - the exchange between the results of production and money, or another type of product;
- consumption shows the use of the final result of production.
It is these stages that make up the production cycle, in which the main figure is a person who is actively influencing other people and the environment to create the necessary living conditions for himself.
The second definition shows what the economy is as an economic complex, forming certain industries by type of production or non-production sphere. The stages of economic production occur on various scales and with different actors. So, we can distinguish microeconomics, which is determined at the level of specific enterprises, families and people, macroeconomics, carried out at a more global level, and the global economy.
The definition of the global economy will be addressed a bit later.
So, the general economic complex of any country consists of certain industries, which are characterized by the unity of products or technological processes, namely:
- the manufacturing sector in which subjects are engaged in material production (agriculture, industry, construction, transport, etc.);
- non - productive sphere that creates information, services and a spiritual product (culture, education, art, consumer services and healthcare).
What is economics - the third definition justifies this concept as a scientific discipline that studies the methods and methods of managing to meet people's needs in the form of creating life benefits.
At least once in a lifetime, but each person is faced with the problem of what his needs are to be met primarily because of the limited resources available. Rational decisions of such a choice are studied by such a discipline as economics. Therefore, understanding what the economy is and knowing its basic laws allows you to carry out economic activities with the greatest benefit.
When designating what an economy is, one cannot but mention its types such as market and non-market (command-administrative, planned, centralized). When managing in a non-market economy, the role of the organizer is assigned to the state.
The world economy is a multi-level and global economic system that unites the national economies of various countries of the world, based on the international division of labor through a system of international economic relations.
In determining the global economy, four levels are distinguished: microeconomics, mesoeconomics, macroeconomics and the international level. The main one is the macro level, which is responsible for organizing the functioning of national economies.