Answer :
Complete Question:
Which is the correct definition of an economy?
Group of answer choices.
A. the distribution of goods and services to meet human needs and wants
B. a social institution responsible for the production, distribution, and consumption of goods and services
C. an organization that produces and distributes goods in a society
D. a social institution that helps people to explain the meaning of their lives
Answer:
B. a social institution responsible for the production, distribution, and consumption of goods and services
Explanation:
An economy can be defined as a social institution responsible for the production, distribution, and consumption of goods and services.
Generally, Economics can be classified into two (2) categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets.
Hence, it is focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.