Which of the following is not a component of economic environment?

The correct answer is Option (3) → Attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences

• Option (1) Existing structure of the economy in terms of relative role of private and public sectors. — A component of the economic environment (Incorrect). It describes how the economy is organised.

• Option (2) Agricultural and industrial production trends — A component of the economic environment (Incorrect). Production trends show how the economy is performing.

• Option (3) Attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences — Not a component of the economic environment (Correct). These describe people’s values, habits and ways of living. They belong to the social environment.

• Option (4) Expansion of transportation and communication facilities — A component of the economic environment (Incorrect). It is part of the country’s infrastructure, which is a component of the economic environment.