personal sector

personal sector

that part of the economy concerned with the transactions of HOUSEHOLDS. Households receive INCOME from supplying factor inputs to other sectors of the economy and influence the workings of the economy through their spending (consumption of goods and services) and SAVING decisions. The personal sector, together with the CORPORATE SECTOR and FINANCIAL SECTOR, constitute the PRIVATE SECTOR. The private sector, PUBLIC (GOVERNMENT) SECTOR and FOREIGN SECTOR make up the national economy. See also CIRCULAR FLOW OF NATIONAL INCOME MODEL.