write the basic explanation of consumer producer, govt and the household
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Answer:
CONSUMER- an individual who has the desire/willingness to pay for a product in order to consume it. A consumer is one that buys goods for consumption and not for resale or commercial purpose. The consumer is an individual who pays some amount of money for the thing required to consume goods and services. As such, consumers play a vital role in the economic system of a capitalist economy. Without consumer demand, producers would lack one of the key motivations to produce: to sell to consumers. The consumer also forms part of the chain of distribution.
PRODUCER- A producer is someone who creates and supplies goods or services. Producers combine labor and capital—called factor inputs—to create—that is, to output—something else. Business firms are the main examples of producers and are usually what economists have in mind when talking about producers.
GOVERNMENT- Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
HOUSEHOLD- A household consists of one or more people who live in the same dwelling and share meals. It may also consist of a single family or another group of people. ... The household is the basic unit of analysis in many social, microeconomic and government models, and is important to economics and inheritance.Households make consumption decisions and own factors of production. They provide firms with factor services in production, and buy finished goods from firms for consumption. The government collects taxes from households, buys goods from firms, and distributes those goods to households individually or collectively.
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