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, iv
Economic agents are individuals or entities that make economic decisions related to production, consumption, and distribution of resources. The main economic agents include:
- Consumers → Individuals or households who purchase goods and services.
- Corporations (Firms) → Businesses that produce goods and services to maximize profits.
- Government → The state or public institutions that regulate, tax, and provide public goods.
- Banks → Financial institutions that facilitate savings, investments, and credit in the economy.