Multiple Choice
Which of the following would be classified as a positive externality?
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7. Externalities
Externalities: Social Benefits and Social Costs
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The impact of baby boomers getting older on an industry would be classified under which PESTEL factor?
A
Demographic
B
Environmental
C
Technological
D
Legal
Verified step by step guidance1
Understand that PESTEL analysis is a framework used to analyze external factors affecting an industry or business. The acronym stands for Political, Economic, Social, Technological, Environmental, and Legal factors.
Identify the nature of the factor in the problem: the aging of baby boomers relates to changes in population characteristics such as age distribution, birth rates, and population growth.
Recall that demographic factors in PESTEL refer to population-related aspects, including age, gender, income levels, education, and cultural trends.
Recognize that since the problem involves the aging population (baby boomers getting older), it directly relates to demographic changes rather than environmental, technological, or legal factors.
Conclude that the impact of baby boomers aging on an industry is classified under the Demographic factor in the PESTEL framework.
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