ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Consumers are the people who buy goods and services. Most consumers get their money by working for companies. This economic cycle creates jobs for people. People with jobs, or workers, have money to spend on goods and services.

Detailed explanation-2: -Producers are people who make or grow goods and provide services. Sometimes they are called workers, and they help us do things. For example, a florist is a producer who makes pretty bouquets. A baker is a producer who cooks up yummy cakes, and a painter is a producer who creates artwork for us to admire.

Detailed explanation-3: -These organisms are called producers because they produce their own food. Some animals eat these producers. These animals are called consumers because they consume something else to get their food. There are different types of consumers.

Detailed explanation-4: -A producer is someone who creates and supplies goods or services. Producers combine labor and capital-called factor inputs-to create-that is, to output-something else. Business firms are the main examples of producers and are usually what economists have in mind when talking about producers.