Simple Definition:

Economy refers to the system of production [creating things], distribution [getting things to people], and consumption [using things] of goods and services in a country or region.

For example, when you go to a store and buy a toy, that transaction is a part of the economy. The store buys the toy from a manufacturer (producer), and then sells it to you (consumer). This process of buying and selling things is a part of the economy.

Very Simple Definition:

Economy is about how things are made, sold, and used.

For example, when you buy a toy from a store, that’s part of the economy. The store buys the toy from a company that prduces toys, and then sells it to you. This process of buying and selling things is a part of the economy.