GENERAL KNOWLEDGE

Detailed explanation-1: -The economic environment consists of an economic system, economic policies and economic conditions prevailing in a country. Interest Rates, Taxes, Inflation, Stock Market Indices, Value of Rupee, Personal Disposable Income, Unemployment rate etc. are the factors which affect the economic environment.

Detailed explanation-2: -Macro environment refers to the external forces within an economy. Macro environment factors like inflation, fiscal policy, monetary policy, consumer spending, GDP, and employment rates considerably affect business operations. Governments and institutions strategize policies based on these factors.

Detailed explanation-3: -Such factors include GDP of the economy, per capita income, availability of capital, utilization of resources, state of the capital market, interest rates, unemployment levels, etc.

Detailed explanation-4: -Unemployment and inflation are two economic concepts widely used to measure the wealth of a particular economy. Unemployment is the total of country’s workforce who are employable but unemployed. On the other hand, inflation is the increase in prices of goods and services available in the market.

Detailed explanation-5: -The occupational distribution of the labour force, the structure of savings, investment and capital formation, the pattern of income distribution, the degree of urbanization etc.