Question : Which environment relates to the availability and allocation of resources
Option 1: Political environment
Option 2: Social environment
Option 3: Economic environment
Option 4: Technological environment
Correct Answer: Economic environment
Solution : The correct answer is (C) Economic environment
The economic environment refers to the conditions and factors that influence the production, distribution, and consumption of goods and services within an economy. It includes factors such as market demand, supply and demand dynamics, economic policies, inflation rates, employment levels, interest rates, and overall economic indicators. The economic environment determines the availability and allocation of resources, including financial resources, labor, raw materials, and other inputs necessary for business operations. Organizations need to understand and adapt to the economic environment to make informed decisions regarding resource allocation, pricing strategies, investment opportunities, and market demand.
