Economic Factors

Economic Factors

Open Ended

What other differences are there between a typical basket today vs 10 years ago?

Open Ended

If your costs have increased by 5% this year, do you pass this cost on to your customers?

What does your answer depend on?

Multiple Choice

Q) Was that an example of Demand Pull or Cost Push?

• Cost Push

• Demand Pull

Open Ended

How about if the prices in your market were falling by 5%, what changes would you make?

Multiple Choice

What is inflation?

• How much money a business spends on products

• How much it costs to import materials

• An increase in prices and a decrease in the value of money

• The price of a currency

Open Ended

What can a business do to deal with inflation?

Multiple Choice

How is an exchange rate determined in the money market?

• Government/the Federal Reserve Bank

• The stock market

• Whatever money suppliers are willing to take

• The forces of supply and demand

Multiple Choice

What does it mean when an economist says a currency is stronger?

• It can be exchanged for more of a lesser foreign currency

• It can be converted to prices in any currency

• It will buy fewer foreign goods

Multiple Select

What are the two types of inflation?

• Cost inflation

• Demand Pull

• Cost Pull

• Cost Push

Multiple Choice

What is an exchange rate?

• How many US dollars you can exchange

• Currency

• The price of one nations currency in terms of the currency of another another nation

• The rate at which goods are exchanged between two countries

Open Ended

How are inflation rates measured?

Multiple Choice

What causes cost push inflation?

• An increase in demand for goods and services

• An increase in supply

• A rise in production costs that is then passed on to consumers

• A fall in the price of imports

Poll

How do you feel about Exchange Rates & Inflation?

• Great

• Good, but a bit more help

• I still have no clue