Firms make production decisions. These include what goods to produce, how these goods are to be produced and what prices to charge. They employ the various factors of production and they sell the finished goods to the households for consumption and to the government.
Households
Households make consumption decisions and own factors of production. They provide firms with factor services in production, and buy finished goods from firms for consumption.[1]
Government
The government collects taxes from households, buys goods from firms, and distributes those goods to households individually or collectively. It also redistributes purchasing power between households.[2]
economic, unit, economy, production, consumption, exchange, carried, three, basic, economic, units, firm, household, government, firms, firms, make, production, decisions, these, include, what, goods, produce, these, goods, produced, what, prices, charge, they. In an economy production consumption and exchange are carried out by three basic economic units the firm the household and the government Firms Firms make production decisions These include what goods to produce how these goods are to be produced and what prices to charge They employ the various factors of production and they sell the finished goods to the households for consumption and to the government Households Households make consumption decisions and own factors of production They provide firms with factor services in production and buy finished goods from firms for consumption 1 Government The government collects taxes from households buys goods from firms and distributes those goods to households individually or collectively It also redistributes purchasing power between households 2 See also editAgent economics References edit Vertrauenswurdigkeit der Kreditgeber ohne Schufa in German 12 May 2021 FCDO economic factsheets 12 May 2021 nbsp This economic term article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Economic unit amp oldid 1125643711, wikipedia, wiki, book, books, library,
