1. How does microeconomics affect business? How does macro- economics affect business? Why is it important for business- people to understand the fundamentals of each?
2. Distinguish between the two types of planned economies. What factors do you think keep them from flourishing in today’s economic environment?
3. What are the four stages of the business cycle? In which stage do you believe the U.S. economy is now? Why?
4. What is the gross domestic product? What is its relationship to productivity?
5. Explain the difference between monetary policy and fiscal policy. How does the government raise funds to cover the costs of its annual budget?