The components of the Economic Environment are:
(A) Expansion of transportation and communication facilities
(B) Money supply in the economy
(C) Public debt (internal and external)
(D) Planned outlay in private and public sectors
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B), (C) and (D)
(A) Expansion of transportation and communication facilities — Correct. Roads, railways, ports and telecom are the basic facilities of the economy. Their growth shows the state of the economy.
(B) Money supply in the economy — Correct. The amount of money in the economy affects prices, interest rates and demand.
(C) Public debt (internal and external) — Correct. This is what the government has borrowed, from inside the country and from abroad.
(D) Planned outlay in private and public sectors — Correct. This is the planned spending of the private and the public sectors.
NCERT (2026-27 Edition):
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