Target Exam

CUET

Subject

Business Studies

Chapter

Business Environment

Question:

Which one of the following is a part of economic environment?

Options:

Public debt

Lifestyle of people

Technological changes

Level of education

Correct Answer:

Public debt

Explanation:

The correct answer is option 1- Public debt.

Public debt is a part of economic environment.

Public debt is a part of economic environment. Public debt is the total amount, including total liabilities, borrowed by the government to meet its requirements. It has to be paid from the Consolidated Fund of India.

The economic environment refers to the conditions and factors that affect the functioning of businesses and organizations within an economy. It encompasses various aspects related to the economic system,  Some Components of Economic Environment are as follows-

* Existing structure of the economy in terms of relative role of private and public sectors.
* The rates of growth of GNP and per capita income at current and constant prices.
* Rates of saving and investment
* Volume of imports and exports of different items.
* Balance of payments and changes in foreign exchange reserves.
* Agricultural and industrial production trends.
* Expansion of transportation and communication facilities.
* Money supply in the economy.
* Public debt (internal and external).
* Planned outlay in private and public sector.