Easy to understand the economic system ⚡️

Easy to understand the economic system ⚡️

It is known that the economy is always uncertain. During good economic times, there will be a lot of spending. But if the economy is bad will not have to spend as much as they should Some even change jobs. Some businesses were shut down.

📌 Relationships in the economy

In the system, it must depend on each other. Help and create benefits for each other. There will be 3 main groups that are important to the change of the economy as follows:

- government

- business sector

- household sector

and when there is an impact or change of any one group can affect other groups as well.

The household sector (labour/land) must be the primary source of costs and establishments. have land for building building Facilitate the business have money for the business sector And will receive compensation in the form of wages, salaries, rent that are income for the household sector.

The money is then used to buy raw materials, goods, services from the business sector, but the household sector has the right to choose the producers according to their preferences. make money turnover business Then calculate the tax on income. to be paid to the state And the government will use the money to develop various parts of the country.

The state is not the only income earner. But the state itself has to pay to improve their livelihoods. to improve the public environment used to buy resources from the household sector (hiring people to work for the state) and stimulating the economy

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