An economy is represented by production and consumption activities, which helps decide how scarce resources need to be allocated in a geographic region. It represents the production and consumption of goods and services.
The US economy is a market economy, in which the producers, and the consumers decide what is produced and sold. Producers make goods, own them, and decide the prices. Consumers buy and own the goods and decide the price they want to pay.
Two other types of economies are the command economy and the traditional economy. In a command economy, everything is controlled by the government. In a traditional economy, each generation follows the previous generation.
Economics is the study of production, distribution, and consumption of goods and services. It divides in to two,