Ecomonics can be defined as "The procedures and laws which govern the trading practices of a particular geographical region". We normally consider trading to mean the exchange of goods for money or perhaps for some other good. As our ecomony developed, governments in the past felt it was necessary to legislate for trading practices to ensure that both parties to the exchange were being treated fairly and the government was obtaining the appropriate income through tax legilation. Legislation governing trading of all types, e.g. Banking, Lending, Environmental, Planning, Health and Safety, etc. is now enormous and highly specialised. Anyone starting a business needs to be aware of the ramifications of such legislation before commencing as a particular law could render a business illegal, contravening specific laws.

The manager of our economy is the "Chancellor of the Exchequer". He is responsible for introducing new laws governing our economy and also tax legislation for government income to pay for public services such as the National Health Service, Education, Social Wealfare, Security Forces and many other services which are provided by the government and facilitated by "Civil Servants".

Our economy is defined as a "Mixed Economy", which means that goods and services can be provided by private indiviuals (through their companies) or by government authorities. e.g. NHS etc. Capitalism is defined as "A system in which the means of production is owned by a private individual who employs labour in order to produce output for private profit". Therefore we may consider capitalism to be a selfish envdevour for the accumulation of wealth. This system of accumulation is greatly facilitated by our modern technology, specifically the computer, and it can lead to "Monopolistic Power" where the provider of some goods or services dominate the market. E.g. The top four food retailers provide approximately 85% of the food sold in the UK. This may be consider as a good system because it promotes effeciency and productivity, thereby reducing the cost of our food. However, capitalism gives us choice. If a particular good or service is needed then someone is likely to provide that need. All goods and services are rationed by price. If you can afford it you can buy it.