Describe the role played by the producers in an economic system, and give two examples of someone being a producer.

In an economic system, producers play the role of providing goods and services. The tools they use for productivity 9the act of producing) are "factor inputs." These factor inputs are labor workers and capital (money that funds production).

Labor, or workers, create products, but economists are speaking of employers when they use the term "producer." Employers pay wages to workers. Employers create economic value by producing goods and services. Without producers, economies have no goods or services to exchange. In such an economy, each person would a self-sufficient producer, surviving with only what they alone can produce. An economy of producers is much more efficient and much richer is what is available to each person.

Firms--businesses, manufacturers, corporations etc--are the main economic producers, but governments are producers as well. Governments produce services, like public schools, public mail delivery, public disability funding, etc, but they may also produce goods, like our national parks and medical insurance for the poor or like oil in OPEC nations.