Impact Of Business On The Economy Flashcards
What does business activity most directly affect?
Employment levels
How does business employment benefit the economy?
Increases local tax revenue
What impact does business investment have on the economy?
Business investment in new technologies and infrastructure can lead to increased productivity and economic growth.
How do businesses contribute to taxation?
Businesses contribute to government revenues through corporate taxes, VAT, and other taxes, funding public services and infrastructure.
How does higher employment benefit the economy?
Higher employment levels boost consumer spending, which drives economic growth.
How do businesses affect economic stability?
Through the contribution of taxes and job creation, businesses support overall economic stability and growth.
What is the role of business in driving innovation?
Business investment in innovation leads to the development of new products and services, expanding markets and increasing economic growth.
How do businesses influence disposable income?
By creating jobs and boosting employment, businesses increase disposable income for households.
