Participants

People are participants both as individuals as well as groups. To facilitate the analysis, people are usually conceived as groups sharing common interests. In economic literature, the participants in an economic system are divided into three subdivisions: firms, families, and the state. The first is the agent that produces income out of expenditure. The second constitutes the final consumer at the same time as labor supply and capital owner. The third is the agent that produces public good, safeguards the interests of individuals, and guards the interest of society. It is noteworthy that the entity which is divided into groups here is not persons but personalities and roles. As a matter of fact, all producers are consumers at the same time. Exceptions are perhaps the very aged and the handicapped who consume but cannot produce. Government employees too are peopling hence consumers. Depending on the demands of our analysis, we can introduce amendments to this division.

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