Karthikeyan

Households means the people living together in a home (like your family). In economics, we don’t just mean the building, we mean the group of people in it.

A household:

• Uses goods and services (like food, clothes, electricity).

• Provides resources to firms (like labour – when your parents go to work).

• Earns income (wages, salary, rent, profit).

• Decides how to spend money and save it.