Quote:
Originally Posted by PaperBagger'14
Google AI had an answer that was rather simple, but accurate based on my understanding. The answer was a blend of both quantitative and qualitative reasons so to some extent it is a man made concept. Here it is:
“ A country's economy is basically the giant system of buying and selling that happens within its borders. Here's a breakdown of the key parts:
People and Businesses: People work in businesses that produce goods (like factories and farms) and services (like teachers and doctors).
Production and Consumption: Businesses use resources to create goods and services that people then buy and consume.
Money Flow: Money flows through the economy as people buy goods and services from businesses, and businesses pay people for their work.
The health of the economy depends on how well all these parts work together. A strong economy means there's a healthy balance between production, consumption, and money flow. This can lead to things like more jobs, higher wages, and a better overall standard of living for the people in the country.”
Based on that definition there is a balance between how much and how freely money is changing hands (quantitative) and how good standards of living are (qualitative).
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I like that. I think the economy has 2 main jobs. Determining what goods/services get produced, and then determining who gets to consume those goods and services.
Obviously the more efficient the production becomes the more stuff there is to divide up on the consumption side.