How do goods and services flow between households and businesses?
Households purchase goods and services, which businesses provide through the product market. Businesses, meanwhile, need resources in order to produce goods and services. Members of households provide labor to businesses through the resource market. In turn, businesses convert those resources into goods and services.
What is the relationship between business and households?
Businesses Purchase Resources (such As Labor) From Households And Use Them To Produce Goods And Services, Which They Sell To Households In Exchange For Part Of The Income Households Earn In Selling Their Resources To Businesses.
How do economists study the interactions between households and businesses?
Economists study the interactions between households and businesses and look at the ways in which the factors of production are combined to produce the goods and services that people need. Basically, economists try to answer three sets of questions: What goods and services should be produced to meet consumers’ needs?
What are the 3 main questions that economists ask?
Because of scarcity every society or economic system must answer these three (3) basic questions:
- What to produce? ➢ What should be produced in a world with limited resources?
- How to produce? ➢ What resources should be used?
- Who consumes what is produced? ➢ Who acquires the product?
What are the 3 basic questions of economics?
Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed? There are two extremes of how these questions get answered.
What is the first and the foremost requirement for the production of goods and services?
Answer: The first and foremost requirement for the production of goods and services is the land and other factors of production like labour and capital.
What is direct Labour cost with example?
Direct labor costs are one of the costs associated with producing a product or providing a service. Examples of direct labor costs include the following: In a manufacturing setting, wages paid to workers in an assembly line. In a service setting, wages paid to workers in the kitchen of a restaurant.
What are the labor requirements for plants?
Answer. Fertilizer,manure,dried leaves,sunlight,water,air,seeds,and germination, are some labor requirements needed for plant care.