Okay, but What is the Economy REALLY?

I know what you guys are probably already thinking: "Eh, I'm not really sure I'm that interested in the economy..." or maybe something like "Isn't the economy just what bankers work with, how could it possibly it affect me?"

And yes, I thought the same thing when I read these definitions on Google's top hits when I just typed in the simple question "What is the economy?". Investopedia describes an economy as "the large set of inter-related production and consumption activities that aid in determining how scarce resources are allocated," while the Merriam-Webster Dictionary defined an economy as "the structure or conditions of economic life in a country, area, or period". Not bad, but we can definitely simplify it further and show you just how important the economy is for you to take interest in! Read on for some key points that might pique your interest.

• There's a lot of different levels of economy. An economy can range from relatively small-scale, like your community/town/city, to massive, of which the largest is the global economy (encompassing the entire world's population). Learning about your local economy will help you understand the concepts of production and consumption on a smaller scale, which I'll get into on the next point.

• There are only two main overarching factors that go into an economy: production and consumption. It seems a lot more complicated, and it definitely can be when you get into the real study of economics and constantly shifting markets, but there are really only two fundamental concepts. Production means the goods that are made or services that put out for people to buy, while consumption is just the act of people buying these goods and services. Simple, right?

• The economy affects everybody. That's right, you're included in that group. The primary function of the economy is providing things that make people happy and satisfy their consumption needs and wants. So essentially, you purchasing goods and services runs the economy, and the economy functions to make sure you have access to and can consume what you need!

• I saved the best for last: Without the economy, we really wouldn't have a way of gauging the value of money and work! In other words, people wouldn't see how to progress and thrive (because let's face it, money does play a big factor in that) and societies literally wouldn't have an economic system to function upon.

Hopefully this post gave you a little insight into why the economy is a pretty important concept to be knowledgeable on, and stay tuned for a part two post coming very soon describing the different types of economy!

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