Question

........... is considered a major element of the economic environment.
(a) Public debt (internal and external)
(b) The nature of relationship of our country with foreign countries
(c) Birth and death rates
(d) Education system and literacy rates

Answer 1

Answer:

The correct answer to this question is Public debt (internal and external)

Explanation:

Given - A major element of the economic environment.

To Find - ........... is considered a major element of the economic environment.

Public debt (internal and external)  is considered a major element of the economic environment.

One important component of the economic environment is productivity.

Economic environment refers to the environment that the country's GDP growth uses to describe its economic health.

GDP rate: Data on all goods generated in a nation are available from the gross domestic product.

When the cost of all goods and services rises, this is referred to as inflation and it has an impact on the economy.

The balance sheet We examine the country's assets and liabilities using the balance sheet.

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Answer 2

Answer:

The correct answer is option (a) Public debt (internal and external)

Explanation:

Economic Environment-

• The economic environment of a country consists of its economic system, economic policies, and economic conditions.
• Economic environment includes-Employment/unemployment.

Income, Inflation, Interest rates, Tax rates, Currency exchange rate, Saving rates, Consumer confidence levels.

Public Debt-

• The total amount borrowed by the government to meet its development budget, including total liabilities, is referred to as public debt. It must be paid from India's Consolidated Fund.
• The term is also used to refer to the total liabilities of the central and state governments, but the Union government clearly differentiates its debt liabilities from those of the states.

Impact of Public Debt on economic elements-

The people have less amount to spend if there are public debts by taken by the government, this will reduce their personal disposable income and also help reduce inflation.

Since, public debt is a factor affecting other economic elements hence it is a major element of economic environment.

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