Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Identify the economic agents from the following.

(A) Consumers.
(B) Institutions like banks or corporations.
(C) Producer.
(D) Government.

Choose the correct answer from the options given below:

Options:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer:

(A), (B), (C) and (D)

Explanation:

The correct answer is Option (3) → (A), (B), (C) and (D)

All four — Consumers, Producers, Financial Institutions (like banks or corporations), and the Government — are recognized as economic agents because they play key roles in the economy. Consumers demand goods and services, producers supply them, financial institutions facilitate savings and investments, and the government regulates and influences economic activity through policies and spending.

" By economic units or economic agents, we mean those individuals or institutions which take economic decisions. They can be consumers who decide what and how much to consume. They may be producers of goods and services who decide what and how much to produce. They may be entities like the government, corporation, banks which also take different economic decisions like how much to spend, what interest rate to charge on the credits, how much to tax, etc."