Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Chapter 4 -review_questions
1. Chapter 4 – Economics
End-of-Chapter Questions
Review Questions
Q1. How does economics relate to business? Can an understanding of economics help
businesspeople succeed? If so how?
Q2. Compare and contrast microeconomics and macroeconomics. How do the two
approaches interrelate? Use a specific example to explain.
Q3. What are the fundamental elements of the free market economic system? How can
businesses thrive within this system?
Q4. What is the difference between fiscal and monetary policy? What role does
politics play in shaping these policies?
Q5. Describe the four degrees of competition within the free market system. Offer two
to three examples of each type of competition.
Q6. Why does quantity supplied tend to increase when prices go up and decrease
when prices go down? Why does quantity demanded move in the opposite
direction?
Q7. Describe the key principles of socialist and communist economic systems. Does
more government control mean less economic opportunity? Why or why not?
Q8. Why do most countries have neither pure market nor pure planned economies? Is
the trend toward the market end of the spectrum likely to continue? Why?
Q9. How do gross domestic product, the employment rate, and the inflation rate relate
to the business cycle? Why is it difficult to predict changes in the business cycle?