The economy is the sum of goods made and services provided in a country/area/world. When more things are made and more (or better) services are provided, the economy gets bigger. This growth can be accomplished by either making more people (and thus producing more goods and services per person) or increasing the productivity of existing people – meaning that they produce more stuff with less time, effort or money.
Business are a key part of the economy, from small local enterprises to large multinational corporations. Businesses retain capital and reinvest it in research and development, which is an important driver of economic growth. They also play a major role in the distribution and consumption of goods.
Governments are another part of the economy, regulating and providing public goods and services. They are also responsible for the redistribution of wealth and income.
The study of economics began in ancient Greece, but the modern concept of an economy is often attributed to Scottish economist Adam Smith (1723-1790). He developed the idea that free trade was driven by self-interest and competition and that the natural price of any product is determined by supply and demand.
Economists are the people who make data-driven decisions to help businesses, governments and financial institutions thrive. They use mathematical models, statistical tools, and economic theory to analyze and understand societal behavior. They may work in many different fields, but their job is always to find ways to make resources and money go further for everyone.