Business economics
Describe the business environment in the city or town that you live in. You should
explain what the current economic environment is and how this environment
encourages or inhibits business activity. Don’t simply say the environment is good or
bad. You must justify your view and give examples to support your answer.
In answering this question, you should also examine the level and nature of competition
in at least five different types of product markets. You should explain the type of market
structure that exists in each of these product markets. You should clearly explain
whether firms mainly engage in price or non-price competition and whether there is
much or little competition and why? Based on your answers above, discuss the effects
that the above business environment has on consumers and society in general.
Question 2
Critically examine the effectiveness of various approaches that may be used to reduce
macroeconomic instability. Your answer should identify and show an understanding of
the various policies that a country’s government and/or central bank may use to
achieve generally accepted macroeconomic goals. You are also encouraged to suggest
your own ideas as to what should be done to more effectively attain desired
macroeconomic goals. In your answer, you should explicitly identify macroeconomic
goals that governments generally pursue. Are these the most important or do you think
governments should aim to achieve other goals?
(You are encouraged to make use of aggregate demand/aggregate supply analysis.)
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