Identify the major sectors in the domestic economy.

The correct answer is Option (3) → Firms, government and household sector.

The domestic economy is generally divided into three major sectors based on their economic roles:

1. Household Sector – owns factors of production (land, labour, capital, enterprise) and supplies them to firms. It receives income in the form of wages, rent, interest, and profit.

2. Firms (Production Sector) – use the factors of production to produce goods and services and sell them in the market.

3. Government Sector – regulates economic activities, collects taxes, and provides public goods and services.