Unit 2: The economic agents

The economic agents

Economic agents, function of companies and governments.

What are economic agents?

Every aspect of economic activity involves economic agents

Make decisions

These economic agents

Take action from an economic perspective

There are three types of agents:

Companies: private sector

Governments: public sector

Huseholds: individuals and families

What is the function of companies?

1. Companies are the basic units of production for economic goods.
2. Their function is to produce, distribute and sell goods and services to households and governments.
3. In return: they received economic benefits.

Companies

Ownership: public companies are managed and funded by the government. Private companies: belong to individuals

Size: Companies are classified as small (50 employees) or large (1.500 employees).

Can be categorised into various ways

What is the function of governments?

Providing services

Running the public sector

Stimulating the economy

Their functions include:

The public sector includes economic activities and initiatives carried out by governments.