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noun B1 Intermediate Very common

economy

ih-KO-nuh-mee

Economy (noun) means the system of production, trade, and consumption within a country, region, or community. Example: “The national economy grew by two percent last year.”

noun
1
The system of production, trade, and consumption within a country, region, or community.
"The national economy grew by two percent last year."
2
Careful or frugal use of money or resources.
"They practised economy by cutting back on unnecessary trips."
3
The cheaper class of seating on a plane or train.
"We flew economy to save money for the hotel."

How to Use Economy

Learner’s notes

In plain EnglishThe system of trade and money in a country, or more generally, the careful, non-wasteful use of resources.

Common pairings
global economy economy of scale fly economy household economy

Word Forms

economies plural

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Test yourself on “economy” A quick quiz — meaning, synonyms & usage

Fill the Gap

Can you complete this real example?

The national _____ grew by two percent last year.

Etymology

From Greek oikonomía, "household management," from oîkos ("house") plus némō ("to manage" or "allocate") — the word originally described running a household well before it grew to mean running a whole economy.

Origin: Greek

Related Words

Rhymes for economy

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Frequently Asked Questions

What does “economy” mean?

The word “economy” means the system of production, trade, and consumption within a country, region, or community. In plain terms, the system of trade and money in a country, or more generally, the careful, non-wasteful use of resources.

How do you pronounce “economy”?

“Economy” is pronounced ih-KO-nuh-mee (/iˈkɑ.nə.mi/ in IPA).

How do you use “economy” in a sentence?

Here is “economy” used in a sentence: “The national economy grew by two percent last year.”

What part of speech is “economy”?

“Economy” is a noun.

Where does the word “economy” come from?

The word “economy” comes from Greek. From Greek oikonomía, "household management," from oîkos ("house") plus némō ("to manage" or "allocate") — the word originally described running a household well before it grew to mean running a whole economy.

Is “economy” a common word?

“Economy” is a very common word in modern English, usually learned at around the B1 level.

How many meanings does “economy” have?

“Economy” has 3 distinct senses listed in this dictionary. The most common is: the system of production, trade, and consumption within a country, region, or community.

What is the difference between the economy and economics?

The economy is the real-world system through which a place produces, trades, and consumes goods and services. Economics is the academic subject that studies how that system works. Put simply, the economy is the thing itself; economics is the study of it — one is the machine, the other the science.

What are the main types of economies?

Economists usually describe four broad types. A market economy is driven by private supply and demand; a command or planned economy is controlled by the government; a traditional economy runs on custom and barter; and a mixed economy — the most common today — blends market freedom with government involvement.

What is the difference between the economy and the stock market?

The economy is the whole system of production, jobs, and spending across a country. The stock market is just one part of it, reflecting the value investors place on listed companies. Share prices can rise while the wider economy struggles, so the two do not always move together.

Why is the economy important?

The health of the economy shapes almost everything in daily life — whether jobs are available, how much wages buy, and the prices of goods and services. A strong economy tends to raise living standards, while a weak one can bring unemployment and hardship, which is why governments watch it closely.

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Definitions: FreeDict original editorial