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Chapter 1: Q 13. (page 25)

What are examples of individual economic agents?

Short Answer

Expert verified

The two main economic agents are:

  1. Households
  2. Businesses

Step by step solution

01

Step 1. Defining Economic Agents

Economic Agents are decision-makers who affect the economy with economic activities like buying, selling, and producing.

Some economic agents are households, businesses, workers, firms.

02

Step 2. The main economic agents.

There are two main economic agents.

  1. Households - They comprise individuals living in the same house. They provide labor to businesses in exchange for wages and salaries.
  2. Business firms are where goods are produced. They supply goods and services in return for money.

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Most popular questions from this chapter

Why is it unfair or meaningless to criticize a theory

as “unrealistic?”

Explain whether each of the following government activities is motivated by concern about equality or a concern about efficiency. In the case of efficiency discuss the type of market failure involved.

  1. Regulating cable TV prices
  2. Providing some poor people with vouchers that can be used to buy food
  3. Prohibiting smoking in public places
  4. Breaking up standard oil (which once owned 90 percent of all U.S. oil refineries) into several smaller companies
  5. Imposing higher personal income tax rate on people with higher incomes.
  6. Enacting laws against driving while intoxicated

What is the position of households in the goods and service market and in the labor market?

What is inflation and what causes it?

What is globalization? How do you think it might have affected the economy over the past decade?
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