Economic units which carry out production of goods and services and employ factors of production are called:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Firms
Firms are the economic units that produce goods and services and employ the factors of production. Households supply those factors.
NCERT (2026-27): Glossary: “Firms – Economic units which carry out production of goods and services and employ factors of production.” Glossary: “Households – The families or individuals who supply factors of production to the firms and which buy the goods and services from the firms.” |