Question

describe the three basic units of an economy?

Answer 1

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:

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Answer 2

The three basic units of an economy are: the firm, the household, and the government.

• Firms settle on creation choices. These incorporate what products to produce, how these products are to be created and what costs to charge. They utilize the different elements of creation and they sell the completed merchandise to the households for utilization and to the government.

• Households settle on utilization choices and own elements of creation. They give firms with factor administrations in production, and purchase products from firms for their own consumption.

• The government gathers taxes from the households, purchases products from firms, and appropriates those products to households separately or collectively. It likewise rearranges buying power between the households.