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Chapter 1: Q 13. (page 25)

What are examples of individual economic agents?

Short Answer

Expert verified

The two main economic agents are:

  1. Households
  2. Businesses

Step by step solution

01

Step 1. Defining Economic Agents

Economic Agents are decision-makers who affect the economy with economic activities like buying, selling, and producing.

Some economic agents are households, businesses, workers, firms.

02

Step 2. The main economic agents.

There are two main economic agents.

  1. Households - They comprise individuals living in the same house. They provide labor to businesses in exchange for wages and salaries.
  2. Business firms are where goods are produced. They supply goods and services in return for money.

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Most popular questions from this chapter

Are households primarily buyers or sellers in the goods and services market? In the labor market?

Explain whether each of the following government activities is motivated by concern about equality or a concern about efficiency. In the case of efficiency discuss the type of market failure involved.

  1. Regulating cable TV prices
  2. Providing some poor people with vouchers that can be used to buy food
  3. Prohibiting smoking in public places
  4. Breaking up standard oil (which once owned 90 percent of all U.S. oil refineries) into several smaller companies
  5. Imposing higher personal income tax rate on people with higher incomes.
  6. Enacting laws against driving while intoxicated

A consultant works for $200per hour. She likes to eat vegetables, but is not very good at growing them. Why does it make more economic sense for her to spend her time at the consulting job and shop for her vegetables?

What are the three main goals of macroeconomics?

If a central bank uses the tools of monetary policy to reduce the demand for goods and services, the likely result is __ inflation and __ unemployment in the short run.

  1. Lower; lower
  2. Lower; higher
  3. Higher; higher
  4. Higher; lower
See all solutions

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