Questions:
1. What is the difference between real and nominal GDP? Does GDP accurately reflect our nation's productivity? Why or why not?
2. What are the different types of unemployment? How do they affect the economy? What is inflation? What is deflation? What is the historical relationship between inflation and unemployment?
3. How do changes in interest rates, inflation, productivity, and income affect exchange rates? Is a strong U.S. dollar always good for the U.S. and global economies? Why or why not?
4. What is the impact of a trade surplus? What is the impact of a trade deficit? How do trade deficits and trade surpluses impact the firm you work for?
5. Postal Service is a great example how market structure may change over time as shown in the simulation. In most cases, a firm can not change or choose the market structure. Even in a monopoly market, the monopoly can try to prevent new comers to enter, yet the government makes the law, and in most cases, entry can only be delayed. Give some other examples on how a monopoly turned into an oligopoly over time?
6. By defining a product's market, we will be able to know who are the competitors in this market, what products they offer and the degree of substitutability of their products to ours. Also, we will know our complements as well, which will also help us with marketing our own product. Hence, this analysis can benefit both sellers and buyers. So, what are the other benefits from knowing the market structure and size?