A new restaurant opens in a community and hires cooks, servers, and managers. The restaurant also purchases supplies from local farms and generates tax revenue for the city. How does this situation illustrate the role of businesses in the economy?
Answer
A
Businesses impact the economy only when they become large enough to operate on a national scale.
B
Businesses generate economic activity solely through the products they sell to consumers.
C
Businesses operate independently from the local economy and only affect their own employees.
D
Businesses create employment, support other businesses through purchasing, and contribute tax revenue to fund public services.