1. what are consumer goods? 2. read the story under 5.01 about michael jordan and his air jordan’s. what are your thoughts about michael wearing his air jordan’s against the policy of the nba? 3. what was the penalty for michael to wear his shoes during games? 4. which phase of the product development process do you believe is most important? why? 5. what is a focus group? how important do you think they are to the success of a new product? 6. name the 4 stages of a products life cycle: 7. now that you know about a products life cycle, why, as a consumer, do you think it might be wise for a consumer to wait for a few months before purchasing a newly launched product? 8. do you think personal selling is more effective than advertising? why or why not?

5. real versus nominal gdp consider a simple economy that produces two goods: cupcakes and muffins. the following table shows the prices and quantities of the goods over a three-year period. year cupcakes muffins price quantity price quantity (dollars per cupcake) (number of cupcakes) (dollars per muffin) (number of muffins) 2014 2 115 5 175 2015 4 150 2 180 2016 1 100 2 160 use the information from the preceding table to fill in the following table. year nominal gdp real gdp gdp deflator (dollars) (base year 2014, dollars) 2014 2015 2016 from 2015 to 2016, nominal gdp , and real gdp . the inflation rate in 2016 was . why is real gdp a more accurate measure of an economy's production than nominal gdp? real gdp does not include the value of intermediate goods and services, but nominal gdp does. real gdp measures the value of the goods and services an economy produces, but nominal gdp measures the value of the goods and services an economy consumes. real gdp is not influenced by price changes, but nominal gdp is.