Reference no: EM13378776

1. Financial markets make it possible for those who have saved money to earn a reward by providing
the financing for business formation and expansion. Business owners can seek financing through the
stock market, the bond market, or the banking sector, or by working directly with potential investors.
Do investors play an important role in the economy? Explain your answer.

2. What determines the success of an individual investor? Do you agree that "it takes money to make money"?

Role: Consumer

1. Discuss the importance of the consumer's role in the economy.

2. How do you distinguish between good decisions and bad decisions made by consumers?

Role: Worker

1. Most people are consumers, making demand decisions in product markets, and also workers, making supply decisions in resource markets. How do workers choose how much of their labor service they are willing to sell? Is the quantity supplied likely to rise or fall when the wage rate is higher?

2. What are some techniques employers can use to improve worker productivity? Consider both carrots and sticks.

Role: Hiring Manager

1. Workers make the supply decisions in labor markets, but firms (represented by hiring managers) make the demand decisions. Will firms want to hire more workers or fewer workers when the wage rate rises? Explain your answer.

2. Discuss some events that would be expected to increase job creation. How can government policy be used to stimulate job creation?

Role: Market Researcher

1. How do market researchers find out how consumers feel about product features and prices?

 2. Should owners use market research when making decisions about starting or expanding a business? Explain your answer.

Role: Policymaker

1. Government policymakers may be elected politicians or appointed experts. Describe some of the specific decisions made by policymakers that affect you personally.
2. Discuss the motivation of policymakers. Are they held accountable by voters?