What is the economy?

The broad concept of economics can be defined in many ways depending on which author we read, as there are different visions or points of view.

However, economics is a science that deals with the study of production, extraction, exchange, distribution, consumption and any other activity that involves the goods and services (wealth creation) that society needs to be able to cover its needs, at least basic.

Specifically, economics tries to find out how natural or different resources are used by public, private or mixed organizations to be able to satisfy the different needs that exist in a society. In each society a need will be satisfied in a different way, and this is precisely what is studied.

Needless to say, the term economics emerged a long time ago, as there are quite a few authors who have tried and perfected this concept. In addition to being considered a science (since economics is based on objective concepts that can be verified by anyone).

Branches of the economy

The economy can be divided into two branches: macroeconomics, which studies the economic behavior or the economy in a country, zone or delimited region; while microeconomics studies economic agents individually (family, companies and governments).

Depending on the branch or area of ​​the economy in which we focus, new concepts associated with it will appear. All of them are important to understand the concept in all its complexity.

Among the most relevant concepts today, we find the concept of inflation or unemployment. In addition, on the different terminologies that can be derived, we find: the mixed economy, the political economy, the underground economy, the informal economy, the underground economy and a long etcetera.

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