This document defines the key economic players - households, businesses, and government - and their roles. Households demand goods and services and supply labor. Businesses employ resources to produce goods and services for sale. There are different types of businesses like sole proprietorships and corporations. Government establishes rules, promotes competition, regulates monopolies, provides public goods, addresses externalities, and manages income distribution, employment, prices and growth for society.

1. ECONOMIC PLAYERS

2. HOUSEHOLD
- All those
people living
under one
roof are
considered a
household.

3. HOUSEHOLDS DO TWO
FUNDAMENTAL THINGS VITAL TO THE
ECONOMY.
1. Demand goods and services from
product markets
2. Supply labor, capital, land, and
entrepreneurial ability to resource markets.

4. BUSINESS (FIRMS)
- Economic units,
formed by profit-
seeking
entrepreneurs who
employ resources to
produce goods and
services for sale.

5. KINDS OF FIRMS
• Sole Proprietorships
• Partnerships
•Corporations

6. GOVERNMENT

7. - An organization made up of people
who are typically elected to represent
the interests of society and govern a
region.
- They are responsible for making and
enforcing laws as well as the
management of the economy

8. ROLE OF THE GOVERNMENT IN
THE ECONOMY
1. Establishing and Enforcing the Rules of the
Game.
2. Promoting Competition
3. Regulating Natural Monopolies
4. Producing public goods.
Public good: A good that, once produced, is
available for everyone to consume, regardless of
who pays and who doesn't.

9. 5. Externality: A cost or benefit that
falls on third parties and is therefore
ignored by the two parties to the
market transaction.
6. Income Distribution
7. Full employment, Price stability,
Economic Growth

11. THANK YOU!!!
PREPARED BY:
PEDRO GERMINAL III
RHANJIT KIM ANGELO FERRIOL
BPE SPE 4B