The moon orbits the Earth due to its initial angular momentum, which prevents it from falling into the sun, similar to how Earth orbits the sun. Both the Earth and moon can be conceptualized as a single entity orbiting the sun, although this oversimplifies their individual dynamics. The discussion also mentions 'horse shoe' orbits, where smaller satellites can follow paths that are influenced by both Earth and the sun. This raises questions about the classification of orbits, suggesting that strict definitions may complicate understanding. Overall, the relationship between the Earth, moon, and sun is complex, involving shared momentum and gravitational influences.