Economy:

The large set of inter-related economic production and consumption

activities which aid in determining how scarce resources are allocated.
OR
An economy or economic system consists of the production, distribution
or trade and consumption of limited goods and services by different
agents in a given geographical location. The economic agents can be
individuals, businesses, organizations or governments. Transactions
occur when two parties agree to the value or price of the transacted good
or service, commonly expressed in a certain currency.

1
Economy:
An economy or economic system consists of
Production
Distribution
Consumption
Trade
of limited goods and services by different agents in a given
geographical location.
Why is economy important?

• The economy is an indicator of development and sustainability.

• A good economy ensures better chances of survival and development
or a state.
• If we understand the cycles and system in Economics, we can better
understand how to manage our money and society!
Economic Development:

Economic development is a process of economic

transition involving structural transformation of an
economy through industrialization, raising gross
national product and per capital income.
Economic Growth:

Economic growth means more production of goods and services growth

is measured in terms of an increase in real gross national product (GNP
or GDP) or an increase in per capital income.
Agriculture:

• Pakistan is the third largest exporter of rice in the world and

producing enough food grains to feed its people

• Pakistan is also one of the five major textile producing countries in

the world.

• Pakistan also produces third largest quantity of milk in the world.

Importance of agriculture:
• Determination of GDP Growth Rate.
• Agriculture Development Essential to Curtail Inflation.
• Major Component of GDP.
• Providing Labour Force to Industry.
• Foreign Exchange Earner.
• Meets food requirements.
• Support to Industries.
• Expanded Industrial Market.
Importance of agriculture:
• Marketable Surplus.
• Pshychological Conditions.