What is an economy and how does it work? This is a very valid question and one often ponders upon this question. In simple words an economy consists of three major factors which are land, labor and capital. These three factors influence the economy greatly. An economy includes the study of number of subjects like history, anthropology, social sciences, geography and sociology. The three major factors namely land; labor and capital help in exchange, consumption, distribution and production of goods and services. The economy is the result of various processes like technological evolution, … [Read more...]