How Economics Affects Business: Creation and Distribution of Wealth

Basic objective of this study is to present on how economics affects business; here focus creation and distribution of Wealth. Economics is the study of how society chooses to employ limited resources to produce goods and services and distribute them for consumption. Economic system is the accepted process by which labor, capital and natural resources are organized to produce and distribute goods and services in a society. Businesses will be more encouraged to expand and take risks when economic conditions are right, e.g. low interest rates and rising demand.