What Is an Economy?

History of the Concept of Economy
The word economy derives from the Greek term for household management and the word is still used in that context.
Economics as an area of study was touched on by philosophers in ancient Greece, notably Aristotle, but the modern study of economics began in 18th century Europe, particularly in Scotland and France.
Development of Modern Economics
The Scottish philosopher and economist Adam Smith, who in 1776 wrote a landmark book called The Wealth of Nations, was thought of in his own time as a moral philosopher. He and his contemporaries traced the evolution of economies from prehistoric bartering systems to money-driven and eventually credit-driven economies. 
During the 19th century, the development of technology and the growth of international trade created stronger ties among countries, a process that accelerated into the Great Depression and World War II. After 50 years of the Cold War, the late 20th and early 21st centuries have seen a renewed globalization of economies.
What Is Economics?
Economics is a branch of the sciences that seeks to understand the way a population functions by studying the way its economy functions. Every group of people develops a survival plan based on shared labor and resources. How they do that, and how well they succeed at it, is the study of economics.
What Is Macroeconomics vs. Microeconomics?
Macroeconomics is the study of the overall performance of an economy. It evaluates the stability and progress of an economy over time by analysis of key indicators. These include gross domestic product (GDP), employment, inflation or deflation, and the balance of trade.
Micronomics is the study of the behavior of the individual consumers and businesses that make up the economy. Their motivations, habits, and behaviors are studied to determine whether an economy is functioning in their best interests.
What Is Economics in Real Life?
All of us participate in an economy, with the possible exception of a hermit living on a desert island. We contribute something to the whole, by producing or helping to produce a product or offering a service. In return, we receive money that allows us to buy the goods and services that we can't produce for ourselves.
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the production, use, and management of scarce resources'.^[1] A given economy is a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure, legal systems, and natural resources 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 interrelated human practices and transactions that does not stand alone.
Economic agents can be individuals, businesses, organizations, or governments. Economic transactions occur when two groups or parties agree to the value or price of the transacted good or service, commonly expressed in a certain currency. However, monetary transactions only account for a small part of the economic domain.
Economic activity is spurred by production which uses natural resources, labor and capital. It has changed over time due to technology, innovation (new products, services, processes, expanding markets, diversification of markets, niche markets, increases revenue functions) such as, that which produces intellectual property and changes in industrial relations (most notably child labor being replaced in some parts of the world with universal