Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Which of the following factors are related to the economic environment?

Options:

Balance of Payments and Budgets

Life expectancy and expectations from the workforce

Legislations passed by the government and regulations laid down by government authorities.

Technological developments and innovations

Correct Answer:

Balance of Payments and Budgets

Explanation:

The correct answer is Option (1) → Balance of Payments and Budgets

Economic environment includes all those factors that influence a country's economic system and business activities, such as Balance of Payments, national income, budgets, inflation rate, interest rate, and fiscal policies.

The other options relate to:

  • Social environment → Life expectancy and workforce expectations.

  • Political-legal environment → Legislations and government regulations.

  • Technological environment → Technological developments and innovations.