1. What is GDP? Real GDP? What does each measure? 

GDP is gross domestic product, and it measures the total value of all goods and services produced in a year by a nation’s economy through domestic factors of production. Real GDP is GDP adjusted for inflation. Both measure annual performance of a given economy.

2. Why is inflation both good and bad? How does the government try to control it? 

Inflation is both good and bad because it can lead to a spiral of rising wages chasing rising prices, which decreases the standard of living. It is good because at moderate levels, it can signal the beginning of a period of growth for the economy. Monetary policy, particularly the ability to adjust interest rates, is government’s most powerful tool to control inflation.

3. What is technology? How does it affect organizations?

Technology has more meanings in this world, in dictionary or public meanings it can we interpretation “ product used and produced to facilitate and enhance performance”. But, in business we can interpretation “ the all the ways firms create value for constituents”

The advantages is improve a firm’s performance of internal operation such as managing informations, accounting, creating activity reports, promotions, and the important is to help create better relationship with external constituents, such as supplier and consumer.

4. What is outsourcing? What are its benefits and risk?

The strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or resources.

When we talk that are benefits or not, we should have a viewpoint whether of the company or the worker (labours).

Benefits :

- Lower cost (absolutely)

- Focus on core competencies

- Increased productivity and efficiency

- Improving customer service

- Better people management

- Skilled expertise

Risk :

- Lost control

- Culture adaptation

- Data security/ protection maybe loss

- Process dicipline

- Loss business knowledge

5. Why is it important for managers to understand the environment in which their businesses operate?

Help managers to put practice the principles the process of management which inturn help him to see the interrelationship between particular theories of management & actual practice. To forge startegies, schedule resources, assess capacity, improve production (performance), be competitive, anticipate and handle problems

6. Explain how current economic indicators such as inflation and unemployeement affect your personally. Explain how they will effect you as a manager.

There is no choice, we cant do anything if we are the victims of inflation. We must doing the activity (ofcourse in economics) limited, because of the bad economic condition. The inflation effects, one of them is unemployment. If I am being on of them is not government mistakes, because I get a position in a firm that doesn’t meet the requirements, so I fired.

When I as a manager, I wil :

- Doing the market intervention

- Decrease the import product. It will effects on maintaining the stability of the exchange rate

-etc