What are the components of an economy?

Question

In general. Is it like, households, firms, etc.. ???

I have no idea.

It's for my assignment.

Answer 1

Wow, you could write a 10 page paper answering this. But  (very) basically, it includes individuals, firms, households, the government, imports and exports, and the federal reserve.

Answer 2

the market economy is defined by four things.

1) a single coercive government to adjudicate disputes and police the market to ensure contract enforcement.

2)  a division of labor (the boundaries of which are where tariffs are imposed, usually national boundaries)

3)  private property

4)  no institutional interferences in the internal operations of the exchanges of goods and services within the division of labor.

If it's not a MARKET economy that is being examined, you could delete numbers 3 and 4.  All economies have a government and division of labor (national borders and/or tariffs).

additional: the first answer given by ABS is absolutely completely wrong and has no meaning.  As though there were no economies before the Federal Reserve Act of 1913?  What was the world doing prior to that?  Your teacher is looking for an academic answer to this question, not examples of things that happen to be present in our economy today.  In fact, free market economists would say that the Federal Reserve VIOLATES the market system.