Which of the following are microeconomic factors? Select THREE that apply.
A.
Rates of taxation
B.
Availability of investors
C.
Unemployment levels
D.
Distribution channels
E.
Rates of inflation
F.
Levels of competition
The Answer Is:
B, D, F
This question includes an explanation.
Explanation:
Microeconomic factors refer to elements that affect individual businesses or sectors rather than the economy as a whole. In this case:
Availability of investors (B): Access to investors impacts capital availability for businesses.
Distribution channels (D): Distribution methods directly influence a business’s ability to get products to market.
Levels of competition (F): Competition affects pricing and strategic decisions within specific industries.
Taxation rates, unemployment levels, and inflation rates are considered macroeconomic factors, affecting the economy on a broader scale, as per CIPS's definitions of microeconomic vs. macroeconomic influences.
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