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Business Environment - Economic Indicators-1

Business Environment - Economic Indicators-1



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Published by manavazhagan

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Published by: manavazhagan on Aug 18, 2009
Copyright:Attribution Non-commercial


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Economic Indicators
12/14/20081Surana College PG_Centre
How an Economy Works / Market Structure of Economy
An Economy consists of :
Household Sector–
Consumers & Suppliers of factorsof production & Entrepreneurship
Business Sector -
All Producing units which drawsfactors of production and convertsinto finished goods for consumption
Financial Sector -
Banks & Financial institutionsacting as intermediaries betweenHousehold & business
Government -
of Legislative,Administrative & Judicialservices which are consumed by other 3 sectors
12/14/20082Surana College PG_Centre
How an Economy Works / Market Structure of Economy
Transaction between the four sectors and betweenthe other economies
HH- B :
HH receives Factor rewards and spends onpurchase of goods
HH- F-B :
Capital formation, cost of capital paid byBusiness
B-G :
Subsidy, Taxes
HH- G :
Services, Taxes
B_- World , H-World , G-World
– Export, Import,
12/14/20083Surana College PG_Centre

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