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National income, output, and expenditure are generated by the activities of the two most vital parts of an economy, its households and firms, as they engage in mutually beneficial exchange. The primary economic function of households is to supply domestic firms with needed factors of production - land, human capital, real capital and enterprise. The factors are supplied by factor owners in return for a reward. L and is supplied by landowners, human capital by labour, real c apital by capital owners (capitalists) and e nterprise is provided by entrepreneurs. Firms The function of firms is to supply private goods and services to domestic households and firms, and to households and firms abroad.Newspapers & Magazines

