Question

Concept and nature of economic environment

Answer 1

The economic environment refers to all the economic factors that affect commercial and consumer behavior. The economic environment consists of all the external factors in the immediate marketplace and the broader economy. These factors can influence a business, i.e., how it operates and how successful it might become.

The economic environment consists of different things for different people. For example, for a farmer, the weather and price of fertilizers are important factors.

Answer 2

Environmental economics is considered both as positive and normative science. It also covers both micro and macro aspects of different pollution problems.