Question

What benefit do households provide for businesses SSEMI S POK?

A. They supply consumers and workers.
B. They dictate the supply of certain gooss.
C. They buy scarce resources for businesses to use.
D. They help businesses save money by looking for bergan.

Answer 1

Households provide businesses with labor and resources, which are essential inputs in the production process. This interaction results in households getting income, enabling them to purchase goods and services, thereby fulfilling their role as consumers and workers in the economy.Hence, the correct answer is option A.

Step-by-step explanation:

The question concerns the interaction between households and businesses in an economy. Specifically, it asks which benefit households provide to businesses. The correct answer to this question is 'A. They supply consumers and workers.'

Firms produce and sell goods and services to households in the market for goods and services (or product market). Households, in turn, pay for these goods and services, which become the revenues for firms. Households obtain the income to buy goods and services by providing labor and other resources such as land, capital, and raw materials, which are essential inputs that firms need in the market for inputs (or factors of production).

Firms pay households for these inputs in the form of wages and other factor payments, which enables households to act as consumers when they purchase goods and services. This economic interaction is beneficial for both parties and is fundamental to the functioning of any market-based economy.