What system is used by a nation to decide how to utilize resources to produce and distribute goods and services?

The concept of an economy encompasses the entire system in which a nation makes decisions about how to use its resources effectively to produce and distribute goods and services. It includes various elements such as consumer behavior, production methods, distribution channels, and the interaction of different market forces.

An economy can take different forms, such as a market system, where supply and demand influence decisions, or a planned economy, where the government makes decisions about production and distribution. The capitalist system also describes an economy, but specifically one characterized by private ownership and free markets. Therefore, while these other systems describe specific types or approaches within an economy, the term "economy" itself broadly and accurately captures the overall framework used by a nation to organize its resources and economic activity.