The correct answer is b. business. Businesses are considered economic entities because they engage in economic activities such as production, consumption, and exchange. They aim to generate income and make economic decisions to maximize profits or achieve other objectives. To arrive at this answer, you can analyze the characteristics of the entities mentioned in the options and determine which one aligns with the definition of an economic entity. In this case, a town (option a) is not typically engaged in economic activities like businesses are. Nonprofit hospitals (option c) may not prioritize profit generation, but they still engage in economic activities and are considered economic entities. Churches (option d) are primarily religious organizations and may not be primarily engaged in economic activities. Therefore, the best answer is b. business.
