Theme 1.1.4 - The Role of Business in the Economy Flashcards
(10 cards)
What is the economy?
The system that involves the production, distribution, and consumption of goods and services in a country
What role do businesses play in the economy?
They create jobs, produce goods/services and generate income
How do businesses create employment?
By hiring workers to produce goods or provide services
What is a stakeholder?
Anyone affected by or interested in a business, such as employees, customers, or the local community
How can a business have a positive impact on the local economy?
By creating jobs, supporting local suppliers, and boosting demand in the area
How do businesses contribute to economic growth?
By increasing production and creating jobs
What is productivity?
The amount of output produced per worker or unit of input
How do businesses help reduce unemployment?
By creating job opportunities for people in the workforce
What is meant by economic growth?
An increase in the total output of goods and services in an economy over time
Why might the government support small businesses?
They contribute to job creation, innovation, and economic diversity
