Name three examples of economic inviroment in economics
1. Inflation rate: The rate at which prices of goods and services in an economy increase over time. High inflation can erode purchasing power and decrease consumer confidence.
2. Interest rates: The cost of borrowing money and the return on savings in an economy. Changes in interest rates influence consumer spending, investment decisions, and overall economic growth.
3. Market competition: The level of competition and market structure in an economy can affect pricing, innovation, and efficiency. A competitive market can lead to more choices for consumers and lower prices, while a monopolistic market may limit competition and hinder economic development.