1) If the economy in a period of growth and is experiencing unwanted inflation, should the government raise or lower interest rates? Why?
2) Why are some products, such as fruit, so susceptible to the supply/demand issue and others, such as gasoline, not? For instance, if the price of oranges goes up by 30%, consumption goes down dramatically, but it the price of gasoline goes up by 100%, consumption only goes down by a small amount.
3 ) There is a lot in the news about capitalism and socialism, and it appears that the words are thrown around without a lot of understanding about what they actually mean. Your assignment is to research both "isms" and find the following:
1. 5 positives for each system
2. 5 negatives for each system
3. Which one do you think is better for Business?
4. Which one do you think is better for Individuals?
5. After doing this research and taking the fun quiz, where on this scale do you fall personally?