What is a potential benefit of government spending on infrastructure?

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Government spending on infrastructure can lead to the attraction of customers to improved areas because enhanced infrastructure typically includes better transportation systems, upgraded utilities, and improved public facilities. When these enhancements are made, the attractiveness of a location increases, thereby drawing in more customers and businesses. For example, improved roads and public transit can facilitate easier access to commercial areas, encouraging consumer foot traffic and boosting local economies.

This investment can also improve the overall quality of life for residents, thereby increasing the appeal of these areas for potential businesses and consumers alike. As communities become more accessible and hospitable due to better infrastructure, they can become more economically vibrant, leading to sustained growth and development.

While other options may seem plausible, they do not reflect the direct relationship between government infrastructure investment and customer attraction in the same way. Decreased unemployment is not guaranteed in all areas, as infrastructure investment can vary regionally. Support for only large businesses does not align with the broad benefits infrastructure projects can provide to small and medium enterprises as well. Lastly, reduction in operational costs applies more specifically to businesses that directly benefit from improved infrastructure rather than as a universal outcome for all businesses.

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