Which of the following are components of the economic environment?
(A) Saving and investment rate
(B) Technological conditions
(C) Money supply
(D) Public debt
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C) and (D) only
(A) Saving and investment rate — A component (Correct). How much people save and invest shows the state of the economy. It is listed among the components of the economic environment.
(B) Technological conditions — Not a component (Incorrect). Technological conditions belong to a separate dimension, the technological environment. It covers scientific improvements and new inventions, like new ways of producing goods. It is not part of the economic environment.
(C) Money supply — A component (Correct). The amount of money in the economy affects prices, interest rates and demand. It is an economic factor.
(D) Public debt — A component (Correct). Public debt is the money borrowed by the government, both inside the country (internal) and from abroad (external). It is also listed among the components of the economic environment.
NCERT (2026-27 Edition): “Technological Environment: Technological environment includes forces relating to scientific improvements and innovations which provide new ways of prod-ucing goods and services and new methods and techniques of operating a business. …”
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