Answer to Question #232453 in Macroeconomics for B foster

Question

Discuss five factors that influence economics

Answer 1

Economics deals with the production, consumption of goods and services.

Factors that influence economics

• Tax Rate-The tax levied to producers rises the cost of production thereby forcing firms to reduce their output.
• Inflation-the level of prices of goods and services in the market determine the consumption of the goods by consumers.
• Labor-the availability of required skills for production affect the amount and quality of output.
• Demand and Supply- the deamand and supply of goods to the market determine the economic growth.
• Law and policies-government regulations and approval usually affect economic activities.