What Are The Resources Owned By Households? Households own all the economic resources in the economy. The economic resources are land, labor, capital, and entrepreneurial ability. Are households resource owners? In a free-market, money-based economy, households, as resource owners, sell their resources to firms for money income. As consumers, households spend their money income buying
What Are The Two Key Groups In A Market Economy? Two basic types of markets exist in any market economy: resource markets and product markets. The exchanges that take place in these markets benefit both the households and the firms that engage in exchanges. Who are the two groups that interact in a market economy?
How Are Resources Allocated In A Market Economy? In a free market economy, resources are allocated through the interaction of free and self-directed market forces. This means that what to produce is determined consumers, how to produce is determined by producers, and who gets the products depends upon the purchasing power of consumers. How are