An economy is a system of making and trading things of value. It is usually divided into goods (physical things) and services (things done by people). It assumes there is medium of exchange, which in the modern world is a system of finance. This makes trade possible The purpose of the economy should be to distribute the earth's resources such as food, water, land, minerals etc among human beings in a sustainable manner. ... The purpose of the economy should be to distribute the earth's resources such as food, water, land, minerals etc among human beings in a sustainable manner. An economy encompasses all activity related to production, consumption, and trade of goods and services in an area. An economy applies to everyone from individuals to entities such as corporations and governments An economy applies to everyone from individuals to entities such as corporations and governments. The economy of a particular region or country is governed by its culture, laws, history, and geography, among other factors, and it evolves due to necessity. For this reason, no two economies are identical.