Question 1) Inflation is the general increase in prices with some prices rising faster than average and even some prices falling. Inflation attracts attention among policy makers and some of the remedies for it can have serious consequences in production and employment.
a) Why would you, as a business manager, care whether annual inflation is 2% or 20%?
b) How would the inflation in one country affect the trade with other countries?
Question 2) Gross domestic product (GDP) includes four components:
1. Consumer spending.
2. Investment spending.
3. Government spending.
4. Net export spending (exports minus imports).
a). Discuss how one of these factors affects one of the four components of GDP shown above. Support your discussion with a real-world example of how your demand or your workplace's (or another business's or industry's) demand has been affected by a change in this factor. Would this change increase or decrease GDP?
b) Discuss how one of these factors affects one of the four components of GDP shown above. Support your discussion with a real-world example of how your workplace's (or another business's or industry's) supply has been affected by a change in this factor. Would this change increase or decrease GDP?
Question 3. Analyze the causes and remedies of unemployment and inflation in a global environment. (Also, includes examples from your job).
Question 4. What does the text mean by "monopoly power?" Is a supplier required to be a monopoly (the sole supplier of a good or service) to practice price discrimination and have monopoly power?
Question 5. How else can sellers prevent buyers from reselling their products/services?