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An airline added fuel surcharge because crude oil prices increased. Which is the main dimension?

Answer and explanation

Correct answer: Economic dimension

The direct answer is C, economic dimension. The business environment includes outside forces that affect a business. To identify the dimension, look at the kind of change described. Crude oil is an input used by an airline, and its price is a money-related market factor. When its price rises, the airline’s fuel cost rises. The airline may pass part of this extra cost to passengers through a fuel surcharge. Option A, social dimension, concerns society, customs, lifestyles, education, or population patterns, not the price of fuel. Option B, political dimension, concerns government stability, policies, and political decisions; no political event is stated here. Option C is correct because prices, costs, income, inflation, interest rates, and exchange rates belong mainly to the economic environment. Option D, legal dimension, concerns laws, rules, courts, and compliance; the surcharge here is a response to a changing input price, not a stated legal order. Exam cue: a change in price or business cost usually points to the economic dimension.

Related tags

Business Environment Dimensions Economic Crude OilDimensions Of Business EnvironmentBusiness EnvironmentBusiness StudiesClass 12 Mcq

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