Definition of 'economy' and 'economics'

The economy encompasses everything related to the production and consumption of goods and services in an area. The economy and the factors affecting the economy have spawned one of the largest fields of study in human history, economics.

The study of economics can be broken into two major areas of focus– microeconomics and macroeconomics. Understanding at least the basic mechanisms of a nation’s economy is essential if one is to be a better informed citizen and voter. Economic fluctuations can affect all or specific industries, and as such, the stability of your job. Further, knowledge of the economy may influence your choice of careers, or encourage a decision to change occupations.