Which of the following best describes the economic environment of a business?
Practice Questions
Q1
Which of the following best describes the economic environment of a business?
The cultural values of society
The level of competition in the market
The overall economic conditions affecting businesses
The technological advancements available
Questions & Step-by-Step Solutions
Which of the following best describes the economic environment of a business?
Correct Answer: The economic environment includes factors like inflation, unemployment, and economic growth.
Step 1: Understand what the economic environment means. It refers to the overall economic conditions that can impact businesses.
Step 2: Identify key factors that make up the economic environment. These include inflation (the rate at which prices rise), unemployment (the number of people without jobs), and economic growth (how much the economy is expanding).
Step 3: Recognize that these factors can influence how businesses operate, such as their pricing, hiring, and investment decisions.
Step 4: Conclude that the economic environment is important for businesses to understand in order to make informed decisions.
