Mixed economy with elements of capitalism and socialism a Households(private) a Consumers of goods and services a Resource owners of some factors of production Businesses (partly private, partly public) Produce goods and services to exchange for revenues (money) Use revenues to purchase factors of production a Governments(public) In exchange for taxes, governments provide public services that would not be provided by business or would be produced only for those who could afford themMixed Economy ◼ with elements of capitalism and socialism ◼ Households (private) ◼ Consumers of goods and services ◼ Resource owners of some factors of production ◼ Businesses (partly private, partly public) ◼ Produce goods and services to exchange for revenues (money) ◼ Use revenues to purchase factors of production ◼ Governments (public) ◼ In exchange for taxes, governments provide public services that would not be provided by business or would be produced only for those who could afford them