definition of economy vs economics

about economy

• Economy in Greek: “one who manages a household”
• economy vs household is similar in making decisions
  • Limited resources vs. unlimited wants
• economy:
  • Refers to the system of production, distribution, and consumption of goods and services within a specific region or country.
  • Includes all economic activities, such as manufacturing, trade, and finance.
  • Factors that impact it include government policies, natural resources, and labor markets.

about resource management

• Scarcity: Society has limited resources → cannot produce all goods & services people wish to have (even billionaires face this)

economics definition

• The study of how society manages its scarce resources
• Examines how goods and services are produced, distributed, and consumed
• It’s the field of study that explores the principles and theories behind the economy

difference between economy and economics

• economy: actual system where goods and services are produced, distributed, and consumed
• economics: the lens through which we study and understand economy