Question

explain the following sectors in an economy
firms, household, government, rest of the world, capital sector​

Answer 1

Answer:

Four major sectors in an economy according to the macroeconomic point of view are:

a) Household sector: It includes consumers of goods and services. Households are also the owners of the factors of production.

b) Producer sector: It includes all producing units in the economy. For the production of goods and services, the firms purchase factors of production.

c) Government sector: It includes government as a welfare agency and government as producer.

d) The external sector: It includes all such activities which are related to export and import of goods, and the flow of capital between the domestic economy and rest of the world.