Which of the four types of economic decision makers is most important?
A)firms, because they produce all goods and services in the economy
B)households, because they demand goods and services and supply resources
C)government, because it ultimately sets and enforces the "rules of the game"
D)government, because it steps in when there is market failure
E)the rest of the world, because there are over 150 countries

Question

Quizplus · Accepted Answer

Households are the most important economic decision makers because they determine the demand for goods and services, which ultimately drives production and economic growth. Additionally, households supply the labor and other resources necessary for firms to produce goods and services. While government and firms also play important roles in the economy, they are ultimately driven by the demand from households.

Which of the Four Types of Economic Decision Makers Is