Economy is present in our life in many ways. Economy is formed in five ways that are connected to each other. They are called Production, Distribution, Consumption, Goods and Services. Production, Distribution and Consumption is how the items you use everyday are made in a factory, shipped and sold to a retail store in where you buy your goods and start using it everyday. For example, say we have a computer. It is built and assembled in a factory, that is the production. Then this computer is shipped to many retail stores, that is the distribution. Finally someone (me/you) buys the computer and starts using it in everyday life, that is the consumption. Goods and Services are the things and people you use everyday. For example, if you use a taxi everyday to commute you have just used a service and if you have bought something and have it for yourself or have traded something you have goods in your pocket.
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