Question

What are the main features (components) of the economy?

Answer 1

1. The economy is a system related to the production, distribution and consumption of goods and services in a specific region.
2. The main features of an economy are :
   • Well defined geographical area.
   • Population, i.e. the people living within that geographical area and undertaking various economic activities.
   • Natural resources to undertake economic activities.
   • Political sovereignty that exercises control over the economy.