1. Describe the role of business in the economy.
In any economy, businesses play a huge role. Businesses are the major provider of jobs and the major drivers of economic growth in a typical economy. Businesses obtain resources such as labor and equipment, and specialize in the production of particular goods and services.
As a result of business in the economy, the variety, quality, and quantity of goods and services available to consumers increases, while the prices of goods and services decrease. Because business is present in the economy, we are able to consume and enjoy many more goods and services than we otherwise could if we had to produce everything on our own. This makes for a higher standard of living and quality of life.
2. Compare and contrast the roles of for-profit and nonprofit organizations in the economy.
Non-profit organizations are seen as more caring by consumers and often work very closely with businesses to improve our way of live. These organizations tend to focus more on areas such as health, art, education, and their end goal is not focused on profit. While one would typically thing that a non-profit wouldn’t have much of an effect on the economy, actually the opposite is true. Non-profits employ one in ten workers, take in revenue, and contribute in many ways to both economic stability and growth. They have become economic magnets for communities which draw in even more investment.
A for-profit organization is seen as a business which is focused on earning a profit, or the money that is earned in sales or revenue. The main goal of every for-profit business is to make a profit by delivering great value to their customers.
Although non-profits and for-profits go about things different ways, they both rely on the various factors of production. The four factors of production are crucial for an economic system to work and grow and