Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
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Chapter 1.1, Problem 5R
To determine

Impact of items purchased by people on economy.

Expert Solution & Answer
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Explanation of Solution

Effect on businesses when people make purchases is given below:

 1. Pen:

When a pen is purchased, three businesses that benefitare:

  • Plastic industry: it provides plastic to produce pen.
  • Chemical industry: it provides ink.
  • Pen industry: it produces and sells pen.

 2. Biscuit:

When a biscuit is purchased, the three businesses that benefit are:

  • Sugar industry: it provides sugar.
  • Flour industry: it provides flour which is a main ingredient.
  • Biscuitindustry: it produces and sells biscuits.

 3. Movie ticket:

When people buy a movie ticket the following three businesses are benefited:

  • Cinema hall owners: they provide the space and make arrangements.
  • Movie making industry (like Hollywood): people from industry are the ones who make movies and earn money in return.
  • Food industry: when people visit cinema hall they also buy some eatables like popcorn, chips, etc. in this way food industry is also benefited.
Economics Concept Introduction

Introduction:

Every purchase made by people affect the economy when people make purchases they generate demandand provide income to the various economic agents.

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