Chapter 1.4 - The contribution of small business to the economy Flashcards
What is an economy?
An economy is a system set up to answer three basic question. The questions are what goods are produced?, how do we produce these goods and services?, how are these goods and services distributed?
Who had employed more people, small businesses or large businesses?
Small businesses which has been the drive of employment growth. These businesses have been a major generator of new jobs.
What do small businesses have to pay?
Small businesses and their employees have to pay tax with the money benefitting the whole community with it contributing to better education systems.
What is economic growth?
Economic growth is when the real value of goods and services increases over a set period of time.
What is a way to measure if economic growth has occurred?
A way to measure is to see whether the GDP (gross domestic product) has grown. The gross domestic product is the total market value of all goods in a country over a set period of time.
