1. In an economic system, what is the role of the household in macroeconomy?

The households are the final consumers of goods and services produced by the firms. They create
demand in the market and according to their tastes and preferences. The firms produced and supplied
goods in the market, as per their demand. Therefore, households determine the production line of a
country.

2. What is the interaction of household and firms? Will it help the government? Explain.

Households sell resources to the government—which uses those resources to produce government
services—in return for income. Business firms sell the goods and services they produce to the
government for revenue. Taxes are the income the government receives from households and firms. In
reality, the government may interact directly with foreign consumers and businesses, but most
government activity with the international sector occurs when the government uses business firms as
intermediaries.

3. How can the level of technology help in the long-run economic growth and development?

In economics, it is widely accepted that technology is the key driver of economic growth of countries,
regions and cities. Technological progress allows for  the more efficient production of more and better
goods and services, which is what prosperity depends on.