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 an Economy-Meaning and Example.JPG

 

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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)

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Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years and a teacher from the past 17 years. He teaches Science, Economics, Accounting and English at Teachoo