An economic agent is an entity that engages in economic activity, such as the production, consumption or transfer of goods and services.
In microeconomic theory, economic agents are typically modeled as utility-maximizing individuals. In macroeconomics, on the other hand, economic agents are often modeled as groups or aggregates, such as firms, households or governments. Other examples of economic agents include financial institutions, like banks and insurance companies, and natural resources.
The concept of an economic agent is important because it helps economists to understand how market economies work. By understanding the behavior of agents within a market economy, economists can develop theories about how prices are determined and how economies grow and develop over time.