Relationship Between Households, Businesses, and Markets
1.
2. To Understand the relationship between
households and business in a market
economy.
3. Goal = sell businesses your resources to get
Money
Buy ECONOS with earnings
Most ECONOS wins
Suggested Resource Price = $50 to $300
4. Goal = earn profit by supplying goods and
services at the best price you can negotiate.
Buy Resources from Households
Exchange Resources for ECONOS
Sell ECONOS for profits
Most PROFIT at the End Wins
1 Human, 1 Natural, 1 Capital Resource = 1
ECONO
5. Two Resources for $100 = $50
Two Resources for $300 = $150
Five Resources for $300 = $60
6. How do individuals and families in
households depend on people in businesses?
How do businesses depend on individuals and
families in households?
7. Economic Interdependence – actions in one part of the
country or world have an impact on what happens else
where.
Markets – location or other mechanism that allows buyers
and sellers to deal in a certain economic product
Factor Market – market where productive resources are sold
(factors of production)
Product Market – market where producers offer goods and
services.
8. Revenue Spending
Product Market
Goods & Goods &
Services sold Services
(Econos) bought
Firms Households
Inputs for Labor, land,
production and capital
Factor Market
Wages, rent, Income
and profit