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: Concept:
Business environment has parts: economic, social, political, legal and technological. We sort each option into one of them.

Step 2: Sort Option 1:
Structure of the economy is an economic factor.

Step 3: Sort Option 2:
Production trends in farms and industry are an economic factor.

Step 4: Sort Option 4:
Infrastructure growth in transport and communication is an economic factor.

Step 5: Sort Option 3:
Attitudes and lifestyles of people are a social factor.

Step 6: Conclusion:
Three options fall in the economic group and one falls in the social group, so the odd one is option 3.

Step 7: Extra Check:
Here is a memory aid. Ask yourself whether a factor can be counted in rupees, tonnes, kilometres or shares of a sector. If yes, it is probably economic.
Sector shares, output trends and the length of roads or phone lines can all be counted this way. Attitudes, lifestyles and tastes cannot be counted so directly, because they describe how people think and live.
That is why option 3 is the social factor and is the answer to this not-type question.

Final Answer:
The odd one out is option 3. \[ \boxed{\text{Option 3}} \]