What is the role that is played by the producers in an economic system? What are two examples?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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The main role of producers in an economic system is to provide goods and services.  Producers are the entities that produce goods and services in an economy.  They take labor and capital and use them to create goods and services.

Please note that the people who actually do the work are not the people who are known as producers in economic terms.  As an economic term, “producers” refers to the entities that hire the workers and buy the capital used to create the goods and services.  Most producers in an economy like that of the United States are private firms.  Private companies like Microsoft, WalMart, and all of the little businesses across the country are producers.  However, government can be a producer as well because it provides services like education and some goods as well.

So, the role that producers play in an economic system is the role of creator of goods and services.  Two examples of producers are private companies like UPS and government entities like school districts.

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