Economics WAEC

The components of a three-sector economy are?

A. banks, schools, and hospitals
B. workers, producers, and marketers
C. households, firms, and the government
D. producers, retailers, and wholesalers

Correct Answer: Option C

C. households, firms, and the government

Explanation

The three-sector economy involves three sectors namely, households, business, and government. The addition of the government in an economy results in bringing two variables in an economy. These variables are government expenditure (act as injections to income) and taxation (act as leakage or withdrawals from income).

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