why the economy is so important to business? And should it be that important?

Answer 1

The economy and business are so dependent upon one another as to be almost interchangeable terms.

When the economy is "good" more businesses are having success. They are earning profits, making sales, hiring new people, giving bonuses and raises. All of these "positive" business activities also stimulate the economy leading to more spending, selling, profiting, etc. These are all good things, until they start "overheating" an economy by causing high interest rates or inflation (which are way too complicated to add to this equation...)

When the economy is "bad" the reverse is true. More businesses than usual are losing money, laying off workers, freezing wages, cancelling expansion plans, and more. All of these activities take money out of the pockets of employees, who then have less to spend at other businesses, require more government spending, and other activities that ripple through the economy and drag it downwards .

Most of the time, we bob around like a cork in the water. Keep the economy from going too high or low. When activities swing strongly one way or another, the eceonomy as a whole will follow to create boom times or "busts"

Answer 2

Without a good economy, businesses would go out of business.

Nothing is more important than a good economy. If many businesses close, then we all lose our jobs, and then we can't pay our rent or buy food. Everything is tied to the economy.

Answer 3

The "Economy" is shorthand for buying and selling. If I don't buy what you have to sell, you can't make money, expand your business and hire more workers, who in turn buy more of what your selling. Without the Economy, you will spend all your days growing or foraging for you own food, and building/seeking your own shelter. Not any better existence than a wild animal.

Other than that, the Economy is not that important. :)

Answer 4

Businesses are part of the economy. They make up our economy. They shape our economy. Its is very important.

There is this thing called circular flow. Our economy mainly has firms and households. Households have factors of production i.e. land labor capital etc. Firms take these resources and make goods and services for the households. This is called real flow - flow of resource from household to firms and flow of goods from firms to households.

Now firms also pay for the factors of production in form of rent, wages, interest, profit to households. The households use this money to buy the goods and services from firms. This flow is called money flow - flow of money from firms to households in form of rent, wages, interest, profit and flow of that money back to firms in form of purchase of goods and services by households.

Answer 5

thats stupid without business u have no economy they depend on each other.