Economic Fundamentals: Families, Government, and Systems
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Families and Households in the Economy
Families or households are primarily responsible for consumption. They make decisions about which consumer goods and services to choose to satisfy their needs. Their ability to spend depends on their income.
The circular flow of income describes the continuous flow of payments for goods and services between households, companies, and the public sector.
The Role of the Public Sector
The public sector consists of various public authorities operating at typically three levels of government:
- Local government: City councils and provincial bodies.
- Regional government: Autonomous regional administrations.
- Central administration: National government, ministries, etc.
The public sector uses several instruments to conduct... Continue reading "Economic Fundamentals: Families, Government, and Systems" »