Question

descibe the three basic units of an economy?

Answer 1

Answer

Production, Distribution and Consumption are the three basic units of an economy.

The factors of production like land, labour, capital and entrepreneurship and their rewards in the lower classes.The rewards for the factors of production and distributed accordingly to their respective share.Thus distribution is significant in an economy.Fair distribution speeds up economy development.

Man satisfy his wants through the conception of good and services.The reward received by participating in the production process is spent on consumption. Therefore, there is a correlation between production distribution and consumption of goods and services.

More:

Economics is the branch of science that studies economic activities relating to production distribution and consumption

Hope it helps you friend◉‿◉

Answer 2

Answer:

In an economy, production, consumption and exchange are carried out by three basic economic units: the firm, the household, and the government.These include what goods to produce, how these goods are to be produced and what prices to charge.

Explanation: