The function of an economy

The function of an economy Economy ? the system that trying to solve the basic economics problems. There are different type of economy like household economy, local economy, the national economy, and the international economy. Economists distinguish three parts to the economics problems What, How and For whom. To solve the problems, allocating the scarce resources to people with unlimited wants, people will decide what to product to fulfil most of the needs and desire of people. There will be allocation in resource to different group of people in the society. People will also decide how to product, which we will discuss in the next few chapters like division of labour. People will organise the productions according to what the workers best at.