A society is a geographical area where interaction of individuals is based on the same socio-economic principles and there is the equal distribution of wealth. An economy is the place of production, distribution, exchange and consumption of goods and Services by various agents. In simple terms, it is the place where people cooperate to produce, use and exchange money and other economic goods or services.
Economy has various types, such as political economy, ethical and behavioral, international economic, internal economic and technological. A country’s economy is the sum total of all the economic activities carried out by the people living in that country. A firm’s wealth is determined by its productive capacity. In economic terminology, wealth refers to the possession and production of goods and services and the skills of the workers. In addition, in a nation, there are the political system, family structure, land ownership, transport infrastructure, tourism, and other factors, which collectively affect the distribution of wealth.
The study of economics is concerned mainly with analyzing the relationships between economic activity, production and consumption, and the institutions that support these economic processes. The modern economy is characterized by complex interlocking webs of interactions among economic agents. It is also affected by the geographical location, technological advances and institutional structures. Economic analysis is the study of how changes in the economy affect the processes of production and consumption and how these changes affect other economic processes.