Any way moving on, Macroeconomics as well as studying the whole economy, we also look at the relationship between one country and another, including the success and failure of government policies.
What are the main sectors of Macro-economy?
As stated before Micro-economy studies individual markets, where as micro economy studies everything as a whole, here are the main sectors of Macro-Economy
- Households - Households receive income from their jobs and investments. Households buy output (products) from their firms (business ie, sainsburys) This is known as consumption or consumer spending and labeled as (c)
- Firms - Firms are businesses that hire land, labor and capital inputs to produce goods and services for which they pay wages and rent (household income). Firms receive payment from consumers (you) and profitable businesses may choose to invest (labeled as I) a percentage of profits in a producers goods (ie Sainsburys)
- Government - The government collect direct and indirect tax (T) to fund spending such as, healthcare, education, travel & defense.
- International sector - The Uk buy overseas products known as imports (M) and overseas consumers and business buy UK products - known as exports (x). International trade is really important as millions of jobs rely directly or indirectly on the UK remaining competitive in the market. If the industry where to fall jobs would be scarce & this would inflate the economy all over the world.
No comments:
Post a Comment