The statement true in the context of Economic Environment is/are: (A) Shifts in demand from vacuum tubes to transistors, from fountain pens to ballpoint, from propeller airplanes to jets, have all been responsible and creating new businesses. (B) High inflation rates generally result in constraints on businesses as they increase the various costs of business such as the purchase of raw materials or machinery and payment of wages and salaries to employees. (C) A rise in the disposable income of people due to an increase in the gross domestic product of a country creates an increasing demand for products. (D) The health-and-fitness trend has become popular among numerous urban dwellers. This has created a demand for products like organic food, gyms, bottled (mineral) water and food supplements. Choose the correct answer from the options given below:

Question

Option 1: (B) and (D) only

Option 2: (A) and (D) only

Option 3: (A), (B) and (D) only

Option 4: (B) and (C) only

AfterBoards · Accepted Answer

The answer is '(B) and (C) only'. View full solution:

List-I	List-II
Dimensions of Business Environment	Examples	Examples
---	---
(A) Economic Environment	(I) Forces like customs, traditions and values
(B) Political Environment	(II) Use of Artificial Intelligence in business
(C) Technological Environment	(III) Policy of RBI to curb inflation
(D) Social Environment	(IV) Promotion of Make in India by government

LIST-I (Features of Business Environment)	LIST-II (Description)
A. Totality of external forces	I. Shifts in consumer preferences or entry of new competition in the market
B. Complexity	II. It consists of numerous interrelated and dynamic conditions or forces which arise from different sources.
C. Uncertainty	III. It is the sum total of all things external to business firms and, as such, is aggregative in nature.
D. Dynamic nature	IV. Difficult to predict when environmental changes are taking place too frequently

CUET Business Studies 2026 13th May Shift 2 PYQs

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