Households are still changing and evolving. It wasn t until women entered the workforce in the 1970 s that we say another household change occurred. Most women did not work outside the home in previous decades. When women left the homes for work outside, a whole new household was born. This household turned to the outside economy for a majority of its needs.
Households demand goods and services.
Durable goods these are things that last over a year like cars, washing machines, lawnmowers, etc. Services these are things like electricity, medical care, accounting services, dry cleaning, etc. Firms also evolved. As technology increased and specialization increased, we began to organize process and factories were born. Firms are economic units formed by profit seeking entrepreneurs who combine land, labor and capital to produce goods and services.