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Economy

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Economic systems of a country will include capital, labor and land resources.. Also economic agents will helps in economical exchange, production, distribution and consumption of goods and services. Factors which determines the contents and context in which an economy functions are technological evolutions, history, social organization and geographical natural resources endowment and ecology. What determines the market equilibrium are savings, investments, consumption which are economics agents (Benjamin 40).

They are two types of economy; formal and informal. Informal economy is economical activity which is taxed by government unlike formal economy. Economy sectors have evolved in successive phases. The ancient economy was based on subsistence farming, and then the industrial revolution led to mono-culture form of agriculture and eventually the modern consumer economies. This modern consumer economy had four main sectors: primary, secondary, tertiary and quaternary sector of the economy. Other sectors of the economy include the public, private and social sector or voluntary sector economy (Sheila 390).

Economic activities can be measured by consumer spending. This is influence by demand -supply forces and consumer income, exchange rates in terms of capital markets, gross domestic product, GDP per capita GNP unemployment level, rate of inflation and Balance of payments. If these factors are favorable in an economy of a certain country then we say their economy has developed. U.S is one of the countries with the best economy in the world. These are because of their high technology, infrastructure network, paying systems to workers, job opportunities, and also their living standards. These factors foster their economic development.

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