Title
(1) The Core Actors in a Market Economy
Topic Category
Circular Flow
Publication Date
2011
Keywords
Circular Flow, Households, Firms, Output Market, Goods Market, Input Market, Factor Market
Abstract
This introduces households and firms as the primary actors in the economy. It also introduces the concepts of output and input markets. The roles of households and firms in each of these market types is explained. All of this is illustrated using a simple circular flow diagram.
Recommended Citation
Crane, Steven E., "(1) The Core Actors in a Market Economy" (2011). Principles of Microeconomics. Paper 22.
http://epublications.marquette.edu/microecon_learning/22
Run Time
5:27
Primary Discipline
Microeconomics
Skills Delivered
Ability to distinguish between households and firms, and their roles in the economy. Ability to distinguish between output and input markets, and to discuss the respective roles of households and firms in each of these markets.
Rigor Level
2000
Prerequisites
None