Nature and purpose of economic activity

Question 1

What is considered the central purpose of economic activity?

Answer 1

• The production of goods and services to satisfy needs and wants.

-The key economic decisions are what to produce, how to, and who it would benefit from the goods and services produced.

Question 2

Who are the Economic agents?

Answer 2

• The individuals and firms that partake in this economic activity
• Also, the demand for and supply for goods and services.

Question 3

What is a free market economy?

Answer 3

• One where firms decided what goods and services to produce with limited intervention from the government.