The people that buy goods and services and consume them directly
Producers
The people that make or produce goods and services, including farmers, manufacturers, and retailers
Government
Elected by the people and has the power to make and enforce rules about how the country is run
Consumers and producers
Consumers buy the goods and services that producers create, and producers offer work to consumers for wages
Government and producers
The government may be a customer of producers, sets rules like product standards and safe working conditions, sets tax rates, and may subsidize certain industries
Government and consumers
The government taxes consumers and uses the tax revenue to provide public services and welfare
All the different groups within the economy are highly interrelated
Market
A place where buyers and sellers come together to buy and sell goods and services
Market economy
Allocation of resources is entirely controlled by the market forces of supply and demand
Planned economy
Allocation of resources is entirely controlled by the state
Market economies
EU
UK
USA
Planned economies
Russia
China
North Korea
All countries are actually mixed economies
Governments in market economies intervene in areas such as healthcare and education to ensure basic needs are met
Economies of Russia, China and North Korea include some privately owned businesses
