Madiara Bane
Intro to Business
Pr. Giordano
ESSAY:
1/ How does the Government adjust monetary and fiscal policy in order to
stabilize economic growth (GDP)?
Note: gross domestic product (GDP) the total dollar value of all goods and
services produced by all people within the boundaries of a country during a one-year
period
Answer: The trough of a recession or depression is the phase in which the
nation’s output and employment bottom out and reach their lowest levels. To
offset the effects of recession and depression, the federal government uses both
monetary and fiscal policies. –Monetary policies are the Federal Reserve’s
decisions that determine the size of the supply of money in the nation and the
level of interest rates. Through the fiscal policy the government can influence the
amount of savings and expenditures by altering the tax structure and changing
the levels of government spending.
2/ State and explain the reasons for and against international trade restrictions.
Answer:
Reason for trade restrictions
Reason against trade restrictions
-To equalize a nation balance of
-High prices for consumers.(this may
payment ( this may restore confidence
impose tariffs, eliminate foreign
in the country’s monetary system).
competition).
-To protect new or weak industries(
-restriction of consumers’ choices
help them to grow and become self-
(direct elimination of some foreign
sufficient)
products from the marketplace)
- To protect national security (generally
-Misallocation of international
apply to technological products that
resources. (Protection of weak
must be kept out the hands of potential
industries results in the inefficient use
enemies).
of limited resources).
-To protect the health of citizens
-Loss of jobs (import restrictions may
(embargo on dangerous or unhealthy
lead to job cutbacks).
products).
-To retaliate for another nation’s trade
restriction (imposing tariffs on imports).
-To protect domestic jobs (imports
restrictions may protect jobs in
industries but it can be expensive).
3/ state and explain four reasons for studying Business.
Answer:
-For Help in Choosing a Career will introduce you to a wide
range of opportunities.
-To Be a Successful Employee  you need a variety of technical
and non technical skills to be competitive.
-To Start Your Own Business need combination of skills, talent
and long hours of work to succeed.
-To Become a Better-Informed Consumer and Investor As a
consumer, you make business decision every transaction.
 As an investor, you understand Business and develop new
ability to spot new trendincrease your wealth.