CA Foundation P4 · Chapter 1 · Question 12 of 15
Which of the following falls within the macroeconomic (external) scope of Business Economics?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Studying the impact of the government's trade and monetary policies on the firm
Explanation
The macro scope covers the external environment in which a firm operates: the economic system, monetary and fiscal policy, trade policy, business cycles and so on. Inventory, capital budgeting and pricing decisions are internal, operational issues and form the micro scope.
More Nature and Scope of Business Economics MCQs
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