The five main participants in the economy
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Video Overview

Economics is a social science, which examines people behaving according to their self-interests. The definition set out at the turn of the twentieth century by Alfred Marshall, author of The Principles of Economics, reflects the complexity underlying economics. Thus it is on one side the study of wealth; and on the other, and more important side, a part of the study of man. Like any science, natural or social, economics has fields of specialisation, ranging from public finance to the economics of health care. The discipline’s two major divisions, however, are microeconomics and macroeconomics. Microeconomics focuses on individual parts of the economy whereas macroeconomics is concerned with the economy as a whole. In this tutorial we will investigate who the role players in the economy are, how they interact with each other, and how both money and goods flow between these parties.