Question

Identify two examples of ways in which households participate in resource markets.

Answer 1

Answer:

Market: Means by which individuals interact to buy or to sell; mechanism that coordinates the independent intentions of buyers and sellers.

 

Before we can go on, it is important to understand what economic actors are interacting in these markets and their relationships to one another.

 

Four (broadly defined) economic actors are:

 

1. Households

2. Firms

3. Governments

4. "The Rest of the World"

Explanation: