Parts
Household: person or group of people who share an income.
-Own the factors of production.
Firms: organization that produces goods and services for sale. They produce goods by taking inputs (factors of production) and turning them into outputs (finished products)
Government: provider of public goods and services. Demander of both public and private goods and services as well as factors of production.
Markets
Product market: where goods and services are bought and sold
Factor/resource market: where factors of production and resources are bought and sold
:max_bytes(150000):strip_icc():format(webp)/Circular-Flow-Model-1-590226cd3df78c5456a6ddf4.jpg)
Will an individual that is self-employed in their own plumbing business be considered part of a household or a firm? Are there real situations where people can be considered both households and firms at the same instance, or does it have to be one or the other?
ReplyDeletegoogle it
Delete