An economy is a set of practices, discourses, goods and services exchanged and produced by various agents in relation to their production, circulation and distribution. In simple terms, it is understood ‘as a political community that define the practices, discourses, material exchanges and policies related to the production, circulation and distribution of goods and services.’ In other words, an economy is the totality of practices of exchange and production, in which the products are produced in relation to the demands of the market.
In fact, the term ‘Economy’ is not limited to the economic activities but also covers all the aspects of human life. The basic idea of economy is to explain the nature of value and why goods are exchanged and the production process is considered to be an economic activity. The major dimensions of economy are production, services, marketing and financial.
Production processes include creation of new goods, the collection of raw materials, transformation of resources into goods and sale of finished products. Services involve service provision such as education, healthcare, infrastructure and law. Marketing is the process by which producers advertise and sell their products to consumers. Financial economies refer to the capacity of credit created to finance production, services and goods as well as fluctuations in the level of interest rates.