macro questions

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  1. One important term that we evaluate in economics is that of scarcity. How does the role of scarcity affect decisions that you have to make?
  2. When looking at prices, you will find that they are always changing in our economy. Why do you think this is important to evaluate for our economy?
  3. When looking at the law of demand, you will find that this is an inverse relationship between price and quantity demanded. How do you relate the law of demand to a recent purchase that you have had to make?
  4. Where have you experienced a shortage before in a store? If you were a store owner, how would you solve for this particular problem?
  5. Why do you think GDP will affect our ability for the economy to grow?
  6. What is more important to evaluate, the real or nominal GDP in measuring economic growth?
  7. When looking at inflation, you will find that this is the general increase in the price level. How does inflation affect your daily decisions?
  8. When looking at the US our GDP Per Capita is $51,000 and China is $3,750. What does this mean about each of the economies and how do you think the US can make that number higher?
  9. What are the limitations of evaluating the GDP?
  10. What is an example of demand-pull inflation? How does it affect our daily decisions that we have to make?
  11. What type of interest rate is more important to evaluate, your real or nominal interest rates?

answer the questions above in 50-100 words 

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