ECONOMIC AGENTS People, human groups, and institutions must work together so that economy works. They are the economic agents or actors

Families. It refers to the groups of people who take part in economic acts: They consume goods and services. They influence on demand and prices, since inflation depends on how much demand is on some products. They are part of the factors of production since they are workers. They salaries they get for their jobs are their essential income. Families have a budget that balances income and expenses.

DEFINITIONS INFLATION: sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase (IPC). IPC: Índice de Precios al Consumo. BUDGET: An estimate of costs, revenues, and resources over a specified period, reflecting a reading of future financial conditions and goals.

Companies. They are the organisations that produce services or goods to get economic profits by selling them in the market: Companies are mostly owned by several people; hence they are called societies and their owners and shareholders since they just own a part of the company. When companies are owned by just one person they are sole proprietorships They have expenses because they must pay their workers and all the raw materials as well as the machinery they need for their production. Their income is obtained by selling their products in the market or by offering some services Profits are obtained when there is more income than expenses

DEFINITIONS PROFITS: The surplus remaining after total costs are deducted from total revenue, and the basis on which tax is computed and dividend is paid. It is the best known measure of success in an enterprise.

State It intervenes in economy by regulating the market or by imposing taxes: The main objective is to get the highest possible standards of living for the greatest amount of people. It enacts economic laws such as setting minimum wage, controlling monetary policy... It can also be a producer when it owns some companies (it is common in the communist countries and less usual in the capitalist ones). It also provides essential services for people, such as education, healthcare...