 In society, three basic economic units engage in economic activities: the household, the firm, and the government.
Households engage in consumption by purchasing finished goods, which spurs firms’ production.
Firms decide what to make, how to make the goods, and how much to charge.
The government collects taxes and other contributions from these two units, redistributing them to society.
The complex interaction between these units is the driving force that keeps the economy running!
| Amelia Moon
Staff Reporter
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