Economists study the interactions between households and businesses and look at the ways in which the factors of production are combined to produce the goods and services that people need.

Question

Quizplus · Accepted Answer

Economists analyze how households (consumers) and businesses (producers) interact in markets to allocate resources and distribute goods and services, focusing on the combination of labor, capital, and natural resources (factors of production) to meet societal needs.

Economists Study the Interactions Between Households and Businesses and Look