Th2.5: Enterprise Flashcards
1
Q
What will the government encourage if they offer tax benefits and grants?
A
the development of business, creating jobs and meaning more goods and services are produced, which will increase economic growth
2
Q
If there is too much wealth distribution (too high taxes and benefits), then…
A
there will be little incentive to work hard as the rich know a lot of their money will be taken away and the poor know there is no need to work as benefits will give them just as much money as a job on minimum wage
3
Q
What will this lack of incentive lead to?
A
businesses not investing and so there will be little or no economic growth
