Which of the following are covered under economic agents?
i. Consumers
ii. Corporations
iii. Government
iv. Banks
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → i, ii, iii and iv
Any individual or institution that takes economic decisions is an economic agent. All four take such decisions.
i. Consumers — Correct. They decide what and how much to consume.
ii. Corporations — Correct. They decide, for example, how much to spend.
iii. Government — Correct. It decides, for example, how much to tax.
iv. Banks — Correct. They decide what interest rate to charge on credit.
NCERT (2026-27): “Economic Agents 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.” |