Economic Growth

Question 1

Positive impacts of economic growth on an individual business

Answer 1

1 higher revenues and higher profitability for the business

2. Gives potential for economies of scale
3. Sub stained growth increases confidence and helps the business plan for the future
4. Managers might decide to expand the business, launch new products or break into new markets
5. Fast growth may cause shortages of raw materials and skilled labour

Question 2

Positive impacts of economic growth on the government

Answer 2

1. Higher revenue encourages investments in new projects which creates jobs. Less need to pay welfare benefits
2. Earn increased revenue though taxes
3. Very high rates of growth are usually followed by recession. Government try to substation the boom and bust by keeping it at a sub stainable level

Question 3

The business cycle

What is an upswing and apply to Smith and Haddon

Answer 3

1. Production increases and employment increases. People have more money to spend

Smith and Haddon can potentially produce more as they will be able to higher new staff meaning that they will be working at a high capacity allowing for quick turnover as people have the disposable income to be able to buy there products quickly

Question 4

Businesses dealing with economic change

Answer 4

Smith And Haddon are a well adapted company in order with dealing with economic issues in certain areas. For example if there is a recession in the UK due to the fact that they export a lot of thier stock to other areas such as Australia and Germany they will still be able to bring in some form of substainable revenue

Question 5

What is GDP

Answer 5

GROSS DOMESTIC PRODUCT

Is the goal market value of goods and services produced by a nation within that nation during a period of time