Economic activity is spurred by production which uses natural resources, labor, and capital. A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its us economy 2015, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions.
In other words, the economic domain is a social domain of human practices and transactions. A command-based economy is one where political agents directly control what is produced and how it is sold and distributed. A green economy is low-carbon, resource efficient, and socially inclusive. A gig economy is a term often used to describe when short-term jobs are assigned via online platforms. All professions, occupations, economic agents or economic activities, contribute to the economy. The first recorded sense of the word “economy” is in the phrase “the management of œconomic affairs”, found in a work possibly composed in a monastery in 1440.
Economy” is later recorded in more general senses, including “thrift” and “administration”. The most frequently used current sense, denoting “the economic system of a country or an area”, seems not to have developed until the 1650s. They developed the first known codified legal and administrative systems, complete with courts, jails, and government records. The ancient economy was mainly based on subsistence farming. The Shekel referred to an ancient unit of weight and currency.
The first usage of the term came from Mesopotamia circa 3000 BC. For most people, the exchange of goods occurred through social relationships. There were also traders who bartered in the marketplaces. In Ancient Greece, where the present English word ‘economy’ originated, many people were bond slaves of the freeholders.
In Medieval times, what we now call economy was not far from the subsistence level. Most exchange occurred within social groups. The European captures became branches of the European states, the so-called colonies. The contemporary concept of “the economy” wasn’t popularly known until the American Great Depression in the 1930s. After the chaos of two World Wars and the devastating Great Depression, policymakers searched for new ways of controlling the course of the economy. With the spread of Internet as a mass media and communication medium especially after 2000-2001, the idea for the Internet and information economy is given place because of the growing importance of ecommerce and electronic businesses, also the term for a global information society as understanding of a new type of “all-connected” society is created. The economy may be considered as having developed through the following Phases or Degrees of Precedence.
The industrial revolution phase lessened the role of subsistence farming, converting it to more extensive and mono-cultural forms of agriculture in the last three centuries. In the economies of modern consumer societies phase there is a growing part played by services, finance, and technology—the knowledge economy. In modern economies, these phase precedences are somewhat differently expressed by the three-sector theory. Involves the extraction and production of raw materials, such as corn, coal, wood and iron.
Involves the transformation of raw or intermediate materials into goods e. A builder and a dressmaker would be workers in the secondary degree. Involves the provision of services to consumers and businesses, such as baby-sitting, cinema and banking. A shopkeeper and an accountant would be workers in the tertiary degree. Involves the research and development needed to produce products from natural resources and their subsequent by-products.