Question

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

• A. Existing structure of the economy in terms of relative role of private and public sectors.
• B. Agricultural and industrial production trends
• C. Attitudes towards product innovations, lifestyles, occupational distribution and consumer preferences
• D. Expansion of transportation and communication facilities

Hint:

Lifestyles and attitudes are social, not economic.

Answer 1

The Correct Option is C

Step 1: Understanding the Question:
The economic environment covers the economic factors that affect a business, such as the type of economy, output trends and infrastructure.
We must find the one that is not an economic factor.

Step 2: Key Formula or Approach:
Economic factors are about money, production, markets and infrastructure.
Attitudes, lifestyles and preferences are about people and society.

Step 3: Option 1:
The role of the private and public sectors describes the structure of the economy. It is an economic component, so it is not the answer.

Step 4: Option 2:
Farm and factory production trends show how the economy is growing. It is an economic component, so it is not the answer.

Step 5: Option 3:
Attitudes to new products, lifestyles, job patterns and consumer preferences describe the way people live and think. This belongs to the social environment, so this is the answer.

Step 6: Option 4:
Transport and communication growth is part of economic infrastructure. It is an economic component, so it is not the answer.

Final Answer:
Option 3 is a social factor, so it is not part of the economic environment. \[ \boxed{\text{Option 3}} \]