long-run growth is measured as the increase in real GDP per capita and this
measure has changed over time and it also varies across countries. A country’s
standard of living depends on its ability to produce goods and services (productivity).
do we measure long-term economic growth of a country? What are the key
determinants of long-run economic growth?
is the relationship between economic growth and productivity? What is the
major source of growth in labor productivity?
are different types of financial intermediaries with different roles in the
economy. Savings and investment spending are interdependent, and interest rates
are determined in the loanable funds market.
are the roles of financial intermediaries and loanable funds market in
promoting long-run economic growth? How do financial intermediaries link saving
does government borrowing crowd out investment? What is the relationship
between government borrowing and budget deficits?
Federal Reserve may increase or decrease money supply depending on the economic
What policy instruments does the Fed use for the
What are the pros and cons of using expansionary and
contractionary monetary policy tools under the following scenarios: depression,
recession, inflation, and robust economic growth? Which do you think is more
economics, inflation is considered as a tax. There are also various costs of
is the inflation tax, and how might it explain the creation of inflation
by a central bank? Explain how inflation affects savings and investment.
distorts relative prices. What does this mean and why does it impose a
cost on the society?
is your favorite brand of sandwich cookie? If you are like most Americans,
chances are it is Oreo. In fact, Oreos are so popular that many people think
Oreo was the original sandwich cookie. But they are wrong. Sunshine first
marketed its Hydrox sandwich cookie in 1908. Hydrox thrived until 1912, when Nabisco
(now part of Kraft) launched Oreo. With Nabisco’s superior distribution and
advertising, Hydrox was soon outmatched. By 1998, Hydrox sales totaled $16
million, while Oreo’s revenues were at $374 million. Hydrox has been purchased
by Keebler (subsequently purchased by Kellogg), whose elves are trying to give
the cookie a major facelift. You are part of the Keebler team deciding what to
do with the Hydrox brand.
you re-create Hydrox through a name change? What kind of brand name could
compete with Oreo? (Most people unfamiliar with Hydrox think it is a
cleaning product.) Develop five (5) possibilities for a new name. Pick the
best out of five and give your reasoning.
can you package your renewed sandwich cookie to make it more attractive on
the shelf than Oreo? What about package size? Draft a brief packaging plan
for the new Hydrox (or whatever name you chose).
you modify the original formula to make something new and more
competitive? Will a brand extension work here? Why or why not?
Lamb, C. W., Hair, J. F., & McDaniel, C. (2014). MKTG7.
Mason, OH: Cengage.