Question

What are examples of individual economic agents?

Short answer

Firms, households, individuals, and enterprises are examples of economic agents.

Step-by-step solution

Concept introduction

Microeconomics and macroeconomics are considered as the two main branches of economics. Microeconomics is concerned with the operations of individual economic agents such as businesses, workers, and households, whereas macroeconomics is concerned with the economy as a whole. It covers a wide range of topics, including unemployment, inflation, production growth, imports and exports, and government deficits. Microeconomics and macroeconomics are not separate sciences, but rather complimentary approaches to the subject of the economy as a whole.

Explanation of the solution

An economic agent is a person who makes decisions based on their understanding of how various factors influence and motivate various economic groups. Their choices directly or indirectly influence the world we live in. They have an impact on the economy from resource allocation to purchasing, selling, and creating. Governments, corporations (producers), and consumers are the three sorts of economic agents. Firms, households, individuals, and enterprises, to name a few, are examples of economic agents.