How do businesses and not-for-profit organizations create our standard of living?

Businesses are the engine room of any economy, businesses are established to make profits, but before a business can make a profit it would have to produce goods or render services that help solve a problem or satisfy a need in society. Also, in carrying out their activities businesses create employment by employing people to work with them, and create demand through the wages paid to their employees which they spend on things, the company buys input for its processes, and both the businesses and its employees pay taxes to the government.

With regards to not-for-profit organizations, they fill the gap where the government and the for-profits organisation cannot operate. They provide assistance to the needy and fight the rights of people, amongst other things.

a.   is the correct choice.

good luck. : )