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Consider the following statements with respect to ‘economic agents’:
Economic agents are only individuals who make economic decisions.
Producers of goods and services who decide what and how much to produce cannot be categorised as economic agents.
Government entities and banks can also be economic agents.
Which of the statements given above is/are not Correct?
- a)1 and 2 only
- b)2 only
- c)2 and 3 only
- d)3 only
Correct answer is option 'A'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements with respect to ‘economic agents’: ...
Statement 1: Economic agents are only individuals who make economic decisions.
Statement 2: Producers of goods and services who decide what and how much to produce cannot be categorized as economic agents.
Statement 3: Government entities and banks can also be economic agents.
Explanation:
Economic agents are individuals or entities that make economic decisions and take part in economic activities. They can be individuals, firms, organizations, or even governments. Let's analyze each statement to determine which one is not correct.
Statement 1: Economic agents are only individuals who make economic decisions.
This statement is not correct. While individuals are indeed economic agents, there are other entities that can also be classified as economic agents. For example, firms and organizations make economic decisions regarding production, pricing, and investment. Therefore, this statement is incorrect.
Statement 2: Producers of goods and services who decide what and how much to produce cannot be categorized as economic agents.
This statement is not correct. Producers of goods and services play a crucial role in the economy and can definitely be classified as economic agents. They make decisions related to production, such as determining the quantity, quality, and pricing of goods and services. Their actions have a significant impact on the economy, and they are an integral part of the economic system.
Statement 3: Government entities and banks can also be economic agents.
This statement is correct. Government entities and banks can indeed be classified as economic agents. Governments make economic decisions related to fiscal policies, taxation, and public spending, which have a direct impact on the economy. Banks, on the other hand, make decisions regarding lending, interest rates, and monetary policies, which influence the availability of credit and the overall functioning of the economy.
Therefore, the correct answer is option A, as statement 1 is not correct. Economic agents include not only individuals but also producers of goods and services, as well as government entities and banks.
Statement 2: Producers of goods and services who decide what and how much to produce cannot be categorized as economic agents.
Statement 3: Government entities and banks can also be economic agents.
Explanation:
Economic agents are individuals or entities that make economic decisions and take part in economic activities. They can be individuals, firms, organizations, or even governments. Let's analyze each statement to determine which one is not correct.
Statement 1: Economic agents are only individuals who make economic decisions.
This statement is not correct. While individuals are indeed economic agents, there are other entities that can also be classified as economic agents. For example, firms and organizations make economic decisions regarding production, pricing, and investment. Therefore, this statement is incorrect.
Statement 2: Producers of goods and services who decide what and how much to produce cannot be categorized as economic agents.
This statement is not correct. Producers of goods and services play a crucial role in the economy and can definitely be classified as economic agents. They make decisions related to production, such as determining the quantity, quality, and pricing of goods and services. Their actions have a significant impact on the economy, and they are an integral part of the economic system.
Statement 3: Government entities and banks can also be economic agents.
This statement is correct. Government entities and banks can indeed be classified as economic agents. Governments make economic decisions related to fiscal policies, taxation, and public spending, which have a direct impact on the economy. Banks, on the other hand, make decisions regarding lending, interest rates, and monetary policies, which influence the availability of credit and the overall functioning of the economy.
Therefore, the correct answer is option A, as statement 1 is not correct. Economic agents include not only individuals but also producers of goods and services, as well as government entities and banks.
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Community Answer
Consider the following statements with respect to ‘economic agents’: ...
Option (a) is the correct answer.
- Statement 1 is incorrect. By economic units or economic agents are those individuals or institutions, which take economic decisions. They can be consumers who decide what and how much to consume.
- Statement 2 is also incorrect. They may be producers of goods and services who decide what and how much to produce.
- Statement 3 is correct. Economic agents/units may be entities like the government, corporations, banks which also make different economic decisions like how much to spend, what interest rate to charge on the credits, how much to tax, etc.
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Consider the following statements with respect to ‘economic agents’: Economic agents are only individuals who make economic decisions. Producers of goods and services who decide what and how much to produce cannot be categorised as economic agents. Government entities and banks can also be economic agents. Which of the statements given above is/are not Correct?a)1 and 2 onlyb)2 onlyc)2 and 3 onlyd)3 onlyCorrect answer is option 'A'. Can you explain this answer?
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