Answer to Question #147084 in Microeconomics for sadia

Question

a) Can you identify and explain your family’s interaction in the market for factors of production and your family’s interaction in the market for goods and services.

Answer 1

Households are suppliers of resources to the market, mostly labor.

Households are consumers in the market for goods and services, and most of the economy is oriented towards households. Consequently, households play a critical role in the economy.