Question

Firms provide
a. income to households
b. taxes and, goods and services to the government
c. goods and services to households
d. all the above
Which of the following is NOT one of the three fundamental economic participants
a. households
b. businesses
c. banks
d. government

Answer 1

Answer:

1. D

2. C

Explanation:

1. Firms or business sector is the one which provide the production activity that is carried out by business and in return provides income to the households, business also provide goods and services to households and it pay taxes on the goods and services to the household.

2. The three economic participants are the households, government and the businesses.