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It is a system by which Goods and services are produced, sold and bought in an area.
Let's take an example to understand.
What is Economy?
Last updated at August 14, 2026 by Teachoo
Economics Class 12
Macroeconomics
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Chapter 1 Macro - Introduction
- Chapter 2 National Income Accounting - Basic Concepts
- Chapter 2 National Income - Part 2 Concept of GDP and GNP
- Chapter 2 National Income - Part 3 Value Added Method
- Chapter 2 National Income - Part 4 Income Method
- Chapter 2 National Income - Part 5 Expenditure Method
- Chapter 2 National Income - Part 6 Summary of Different Methods
- Chapter 3 Part 1 - Money
- Chapter 3 Part 2 - Banking
- Chapter 4 Part 1 - AD,AS and Related Concepts
- Chapter 4 Part 2 - Income Determination and Multiplier
- Chapter 4 Part 3 - Excess Demand and Excess Supply
- Chapter 5 - Government Budget
- Chapter 6 Part 1 - Foreign Exchange Rates
- Chapter 6 Part 2 - Balance of Payment
Transcript
Example Suppose there are only 2 people in an area -Factory and Mr. A Factory Sells goods to Customer A A pays them money A also works in same factory as Employee Factory pays him Salary Factory is Producing and Selling Goods to A A selling its services to Factory What is an Economy It is a system by which Goods and services are produced ,sold and bought Produces and Sells Goods Money Job (Service) Salary (Money)
