A three-sector economy consists of business, government, and households, with the household sector being the major supplier of funds for investment.

Question

Quizplus · Accepted Answer

In a three-sector economy, the household sector primarily provides labor to businesses and government, and also saves money in financial institutions, which then becomes available for investment by businesses. This makes the household sector a major supplier of funds for investment.

A Three-Sector Economy Consists of Business, Government, and Households, with the Household