The correct answer is option 1- A-I, B-II, C-III, D-IV.
LIST 1
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LIST 2
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| (A) Increase in taxes by government |
(I) Make things expensive to buy |
| (B) Technological improvements |
(II) Existing products obsolete |
| (C) Political uncertainty |
(III) Create fear in the minds of investors |
| (D) Changes in fashions and tastes of consumers |
(IV) Shift demand in the market from existing products to new ones |
Changes in government’s economic policies, rapid technological developments, political uncertainty, changes in fashions and tastes of consumers and increased competition in the market — all influence the working of a business enterprise in important ways. * Increase in taxes by government can make things expensive to buy. * Technological improvements may render existing products obsolete. * Political uncertainty may create fear in the minds of investors. * Changes in fashions and tastes of consumers may shift demand in the market from existing products to new ones. * Increased competition in the market may reduce profit margins of firms. |