Name: William C.

Revelo Date:
Year & Sec: BSE-SOCIAL STUDIES 2 Score:

Household - refers to the consumer of the goods that firm produce. They are the one who enjoy different services from
government. They are also the laborer of the firm who work from production of goods. In other terminology, a house of one or
more people who live in the same dwelling and share meals. It may consist of a single family or another group of people. The
household is the basic unit of analysis in social, micro-economic and government models, and is important to economics and
inheritance. Household work strategies vary over the cycle life as household member age, or with the economic environment;
they may imposed by one person, or be decided collectively. As a person we have an unending wants and needs in this life. We
demand more that we had, we need to work to pay our loans and daily needs.

Firm - the firm is refers the producer of goods. The vital role of the firm is to provide and supply the demand of the household.
They gain profit from the household, to pay wages and salary to the laborer. They are the one who maintain the product
availability and also utilize the human resources. Firm use it’s workforce to produce a high volume of consumer goods to sustain
its products affordable prices in the market.

Government - regulates firm and household to intervene and control the prices of goods that firm produce and sale to
household to make tax. Tax is the blood of the country, the government use tax for different services to people. They are called
as the ruler of the game who regulates firm and household to convert profits for making public goods. For example, people
enjoy using public infrastructure such as highways, bridges, and more. The government make it possible from the tax of the
people in return, and also the government manage the economic growth for the country modernization .

Income - Income or the money refers to profit of an individual gain from working. For household and individuals, “Income is the
sum of all the the wages, salaries, profits, interest, payments, rents, and other forms of earnings received in a given period of
time. For a firm, gross income can be define as sum of all revenue minus the cost of goods sold. In government, income made
from taxes of household and firm to run the country for the welfare of its people. We already know that economics work
through the income of an individual, firm and the country itself.