Question by  Anonymous

What are the various participants in an economy?


Answer by  spottygao (42)

The economic model of circular flow of income abstracts economic agents into households (who work and consume), firms (who produce and employ), government (which taxes and spends) and international (which buys exports and sells imports).


Answer by  asg92 (188)

The participants in economies break down into four categories. In the primary sector, people work in the extraction of raw materials. In the secondary sector people and firms transform raw materials into manufactured goods. The tertiary sector involves providing services to businesses and consumers. The quaternary sector of the economy involves research and development to improve productivity.


Answer by  joe21 (26)

An economy is created when a someone has something, a good or a service, to trade and there exists someone who values that good or service. A trade takes place when both the seller and buyer agree on a price. In a free economy, both the buyer and seller must believe they will benefit from the trade.


Answer by  Richard88 (391)

Major components of a national economy are consumers, business, and government. A key component is business, which organizes labor and capital to convert natural resources, labor, imported goods, and technology into goods of value higher than the inputs. Per capita growth rises in relation to only to increases in technology. Banks are exchange centers for capital. Government enforces societal rules.

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