What is a potential negative impact of business on the economy?

The impact of businesses on the economy can include various positive and negative effects. Among the choices given, price increases for consumers represent a potential negative effect. When businesses face higher costs for raw materials, labor, or operations, they may pass these costs onto consumers by raising prices for goods and services. This inflation can reduce consumers' purchasing power, as individuals may find that their income does not stretch as far when prices increase, leading to a decrease in overall consumer spending.

In contrast, increased employment opportunities, higher taxes collected by the government, and growth in infrastructure development are generally associated with positive impacts that businesses can have on the economy. Employment opportunities lead to greater consumer spending and improved quality of life, while higher taxes can provide governments with resources to fund essential services. Infrastructure development can enhance efficiency and productivity, further contributing to economic growth. Therefore, while business can bolster the economy in various ways, price increases can adversely affect consumers and overall economic health.