Understood in its broadest sense, ‘The economy is economic analysis of projects pdf as a social domain that emphasizes the practices, discourses, and material expressions associated with the production, use, and management of resources’. Economic agents can be individuals, businesses, organizations, or governments. 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.
A given economy is the result of a set of processes that involves its culture, values, education, technological evolution, history, social organization, political structure and legal systems, as well as its geography, natural resource endowment, and ecology, 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 human practices and transactions. It does not stand alone. The first recorded sense of the word “economy” is in the phrase “the management of œconomic affairs”, found in a work possibly composed in a monastery in 1440. Economy” is later recorded in more general senses, including “thrift” and “administration”. The most frequently used current sense, denoting “the economic system of a country or an area”, seems not to have developed until the 19th or 20th century.