Entities like the government, corporations and banks take which of the following economic decisions?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → All of the above
Entities like the government, corporations and banks are economic agents. They decide how much to spend, what interest rate to charge on credits and how much to tax.
Each of options (1), (2) and (3) is a correct statement, but it is only one of the correct points, so on its own it is not the answer.
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.” |