Which of the following are microeconomic factors? Select THREE that apply.

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

View Answer

Answer: B, D, F

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.