System used by humans to meet diverse wants and needs and attempt to avoid scarcity and overproduction. Its institutional structure is governed by laws, rules, and norms that dictate production, labour price, and allocation. In other words, what to produce, how to produce it, and whose products are allocated. We can characterize economies by how they operate and what their main political and social objectives are . Major sectors of market capitalism : primary: resource extraction, secondary: manufacturing and processing, tertiary: sales and services, quaternary: research & development, intellectual activity. *in a globalized economy, these activities often take place in different regions and/or countries. *each sector of the economy had different types of impacts on the environment. A body of institutions that regulates the social, economic, legal, and political affairs of a nation. In addition to government, this includes courts, military and law enforcement, centralized banks or financial institutions, and even schools or training facilities.