G
market
a. the goods and services that households produce are purchased by firms.b. firms purchase factors of production from householdsc. Households purchase factors of production from firmsd. firms loan money to households to purchase capital
In a market economy, firms make the goods. Households buy the goods.
firms produce only what people with money want and need.
In a free market economy, firms purchase factors of production such as labor, from households.
Consider an economy consisting of households and firms which interact in two markets i.e. the goods and services market in which firms sell and households buy; and the labor market in which households sell labor to business firms or other employees. Required: Illustrate the above economy on a diagram
market
Consider an economy consisting of households and firms which interact in two markets i.e. the goods and services market in which firms sell and households buy; and the labor market in which households sell labor to business firms or other employees. Required: Illustrate the above economy on a diagram
a. the goods and services that households produce are purchased by firms.b. firms purchase factors of production from householdsc. Households purchase factors of production from firmsd. firms loan money to households to purchase capital
In a market economy, firms make the goods. Households buy the goods.
in a market economy, firms make the goods. Households buy the goods
in a market economy, firms make the goods. Households buy the goods
firms produce only what people with money want and need.
In a free market economy, firms purchase factors of production such as labor, from households.
An economy that depends on a large amount of spending by consumers
The product market is the market in which firms sell their output of goods and services.
In a centrally-run economy, decisions about quantities and prices of goods and services to be provided are made by a small group, usually government bureaucrats. The opposite is a market economy, where such decisions are made - in theory - by private producers (sellers) and consumers (buyers). Neither type exists in its pure form.