Question

Explain briefly the basic units of economic analysis.​

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. Firms make production decisions. These include what goods to produce, how these goods are to be produced and what prices to charge.

Answer 2

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