economy

[ ih-kon-uh-mee ]

noun

, plural e·con·o·mies.

1. 1. the complex of activities related to the consumption, production, and trade of goods and services, as an ongoing functioning system:

      Further inflation would seriously endanger the national economy.

   2. Usually the economy. the general state of these activities at a particular time and in a certain country, region, etc.:

      The economy is booming, blue-collar wages are up, and unemployment is the lowest it's been in decades.

      We have had a number of clients who lost their jobs due to the economy.

   3. the dominant framework, setting, or context for these activities:

      Economists predict a restoration of a market-driven capitalist economy in the country.

      More than 80 percent of the country's population is involved in agriculture, making it one of the most agrarian economies in the world.

2. thrifty management; frugality in the expenditure or consumption of money, materials, etc.:

   By careful economy and some small sacrifices, he paid all his debts.

   Synonyms: thriftiness, saving, thrift

   Antonyms: wastefulness, lavishness, extravagance

3. an act or means of thrift; a saving:

   He achieved a small economy by walking to work instead of taking a bus.

4. the efficient, sparing, or concise use of something:

   When you're ill, practicing an economy of effort for everyday tasks is important.

5. economy class ( def ).
6. the organization or regulation of the parts of a system:

   The medication disrupts the normal hormonal economy of the body.

7. Theology.
   1. the divine plan for humanity, from creation through redemption to final beatitude.
   2. the method of divine administration at a particular time or for a particular people.
8. Obsolete. the management of household affairs.

adjective

1. costing less to make, buy, or operate:

   With fuel prices so bad, I'm glad I have an economy car.

2. of or relating to economy class:

   The economy fare to San Francisco is only $20 cheaper.

3. intended to save money:

   They voted to reduce the staff in an economy move.

adverb

1. in economy-class accommodations, or by economy-class conveyance:

   These days I can only afford to travel economy.

economy

/ ɪˈkɒnəmɪ /

noun

1. careful management of resources to avoid unnecessary expenditure or waste; thrift
2. a means or instance of this; saving
3. sparing, restrained, or efficient use, esp to achieve the maximum effect for the minimum effort

   economy of language

4. 1. the complex of human activities concerned with the production, distribution, and consumption of goods and services
   2. a particular type or branch of such production, distribution, and consumption

      an agricultural economy

      a socialist economy

5. the management of the resources, finances, income, and expenditure of a community, business enterprise, etc
6. 1. a class of travel in aircraft, providing less luxurious accommodation than first class at a lower fare
   2. ( as modifier )

      economy class

7. modifier offering or purporting to offer a larger quantity for a lower price

   economy pack

8. the orderly interplay between the parts of a system or structure

   the economy of nature

9. philosophy the principle that, of two competing theories, the one with less ontological presupposition is to be preferred
10. archaic.
    the management of household affairs; domestic economy

Other Words From

• non·e·con·o·my noun plural noneconomies
• sub·e·con·o·my noun plural subeconomies
• su·per·e·con·o·my noun plural supereconomies

Word History and Origins

Origin of economy¹

First recorded in 1520–30; from Middle French economie, from Latin oeconomia, from Greek oikonomíā “household management,” from oîko(s) “house” ( ecology ( def ) ) + -nomia -nomy

Word History and Origins

Origin of economy¹

C16: via Latin from Greek oikonomia domestic management, from oikos house + -nomia, from nemein to manage

Example Sentences

David McCabe is a Times reporter who covers the complex legal and policy issues created by the digital economy and new technologies.

From New York Times

The California economy has been in a gradual slowdown over the last two years, Petek said.

From Los Angeles Times

Still, several studies show that the first Trump tariffs — many of which President Joe Biden kept in place and in some cases expanded — raised prices and hurt the economy.

From Salon

Turkey’s poor economy is only adding to the problem, argues Murat Erdoğan, a professor of migration studies at Ankara University, who is no relation to the president.

From BBC

She said the firm's improvement plan would "generate higher revenues for the taxpayer and boost the entire region’s economy".

From BBC

Related Words

• frugality
• prudence
• thrift
• thriftiness

More About Economy

What does economy mean?

An economy is everything involved in managing resources in a particular place.

Resources are things known as goods and services. Goods are touchable things we can own, like food or cars. Services are work you can do for pay, such as cooking food at a restaurant or repairing a car at a garage. An economy includes all of the systems, activities, and organizations that determine who gets goods and services, how many goods and services there are, and how they can be exchanged or owned.

Stores, factories, companies, governments, customers, money, trade, taxes, and many other things all work together to make up an economy. We usually specify an economy by location, as in the German economy. But it’s common for someone to refer to the economy of their own country as “the economy.” The study of economies is called economics.

Economies are often very complex and are influenced by many different factors, such as supply of natural resources, culture, government policy, weather, pandemics, and changes in technology.

Many modern countries have a market economy. In this kind of economy, a person or business owns the goods and services they produce and can decide how much they want to sell them for. Likewise, customers or buyers have money that they can decide how much they are willing to spend on goods and services. In this type of economy, prices are determined by supply and demand. Goods and services that are rare or greatly desired by many people have a high price, while goods and services that are plentiful or less-wanted things have a low price.

By comparison, in a command economy a government decides how goods and services will be distributed and industries are mostly owned by the public.

Why is economy important?

The first records of the word economy come from around 1520. It ultimately comes from the Greek word oikonomíā, meaning “household management.”

Generally speaking, the world’s oldest economies go all the way back to prehistoric humans who traveled around, hunting and gathering food and supplies, which we call a traditional economy. Because money didn’t exist back then, we believe the community shared everything they gathered. Who got what food and supplies was decided according to strict society rules, whose main goal was to ensure everyone was fed.

Today, the state of a nation’s economy is often one of the most important issues in society. Poor or failing economies can lead to major problems, like widespread starvation or violent uprisings against the government. Our lives are impacted by the economies of the places we live every day because it is the economy that determines if we can eat, how much money we make, and how much everything costs.

Did you know … ?

Thanks to advances in technology, especially the internet, the economy of the entire world can be tracked and analyzed. Economists and economic planners will often consider the state of the “global economy” when giving advice or making observations.

What are real-life examples of economy?

People are always very interested in the state of the economy.

Is the failing economy going to be issue number 1 in the elections?

— THE NEWSHOUR (@thenewshour) August 30, 2013

Fastest growing economy in the world hitting the breaks

JP Morgan slashes China Q1 GDP forecast to 6.2% from 7.2%

— Lawrence McDonald (@Convertbond) March 14, 2014

 

What other words are related to economy?

• resources
• goods
• services
• distribution
• production
• trade
• business
• money
• commerce

Quiz yourself!

True or False?

An economy involves determining who is able to purchase goods and services and how they will get them.