Which factor in the business environment can directly affect consumer purchasing power?
Practice Questions
1 question
Q1
Which factor in the business environment can directly affect consumer purchasing power?
Political stability
Economic conditions
Technological changes
Social trends
Economic conditions, such as inflation and employment rates, directly impact consumer purchasing power.
Questions & Step-by-step Solutions
1 item
Q
Q: Which factor in the business environment can directly affect consumer purchasing power?
Solution: Economic conditions, such as inflation and employment rates, directly impact consumer purchasing power.
Steps: 5
Step 1: Understand what consumer purchasing power means. It refers to the amount of goods and services that consumers can buy with their income.
Step 2: Identify the factors that can influence how much money consumers have to spend. These include economic conditions.
Step 3: Learn about inflation. Inflation is when prices of goods and services increase, which can reduce how much consumers can buy with the same amount of money.
Step 4: Understand employment rates. When more people have jobs, they have more income to spend, which can increase purchasing power.
Step 5: Conclude that both inflation and employment rates are key economic conditions that directly affect consumer purchasing power.
