Basic Concepts of the Economy

The term “economy” refers to the social domain of material expressions. The term is derived from the Latin word economus, which means “economy.” The economic domain includes trade, production, distribution, and consumption. It is the area of a society where practices and discourses are emphasized. This article will define the basic concepts of the economic domain. It’s important to note that economy can encompass a broad spectrum of activities.

There are two types of economies. The first one is the oikonomos stage. The second type is the quaternary stage. In this phase, the resources are scarce and the goods produced by them are of high quality. In the third phase, the economy involves the management of the limited resources. The fourth stage is the industrial revolution. There is also a process called industrialization. The last type of economy is the oligopoly.

In the primary stage of the economy, decisions are made by individuals. Its activities involve exchanges between goods. A secondary stage involves transformation of intermediate materials into finished goods. The final stage is the industrial stage. The secondary stage of the economy includes many different industries and economic sectors. The third stage is the manufacturing and processing phase. In the fourth stage, the products are transformed into useful commodities. Lastly, the primary stage of the economy is the market.