Questions and Answers
What is an economy and what does it encompass?
An economy is an area of production, distribution, trade, and consumption of goods and services. It encompasses culture, values, education, technological evolution, history, social organization, political structure, legal systems, and natural resources as main factors.
When do economic transactions occur?
Economic transactions occur when two groups or parties agree on the value or price of a transacted good or service, commonly expressed in a certain currency.
What are economic agents and give examples of them?
Economic agents are individuals, businesses, organizations, or governments. Examples of economic agents include households, corporations, non-profit organizations, and the government.
Why do economic transactions occur?
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What are the main factors that influence an economy?
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