What is Taxonomy in drupal7?

The Taxonomy module allows you to classify the content of your website. To classify content, you define vocabularies that contain related terms, and then assign the vocabularies to content types.

Best Example of USAGE :

Uses

Creating vocabularies

Users with sufficient permissions can create vocabularies and terms through the Taxonomy page. The page listing the terms provides a drag-and-drop interface for controlling the order of the terms and sub-terms within a vocabulary, in a hierarchical fashion. A controlled vocabulary classifying music by genre with terms and sub-terms could look as follows:

• vocabulary: Music
• term: Jazz
• sub-term: Swing
• sub-term: Fusion
• term: Rock
• sub-term: Country rock
• sub-term: Hard rock

You can assign a sub-term to multiple parent terms. For example, fusion can be assigned to both rock and jazz.

Terms in a free-tagging vocabulary can be built gradually as you create or edit content. This is often done used for blogs or photo management applications.