Mr Bux P5
What is meant by the term recession, why does it matter and how are Marriott
affected?
A Recession is a slowdown in economic activities. A significant fall in spending would
usually lead to a recession. A recession means a fall in GDP. A recession would be
characterized by high unemployment, falling average incomes, increased inequality and
higher government borrowing. The impact of a recession depends on how long it lasts and
how low the fall goes. The great recession of 2008-12 has shown many of the negative
impacts of recession. Marriott hotel is affected by a recession because during a recession, a
lot of people tend to cut out their luxury spending’s which would be going out to hotels or
going to restaurants which would lower Marriott’s income as they won’t have as many
customers.
What is meant by the term economic growth and why does it matter?
Economic growth is an increase in the amount of goods and services produced per head of the
population over a period of time. If there is economic growth, businesses make more money
as well as customers save more money.
What is meant by the term economic ripple effect?
A ripple effect is a situation where ripples expand across the water when an object is dropped
into it; it is an effect from an initial state that can be followed outwards. Examples can be
found in economics where an individual's reduction in spending reduces the incomes of
others and their ability to spend. In economics it is an indirect effect that spreads out from the
direct or main effect to reach areas or population far removed from its intended or original purpose or
target.
How are Marriott affected by supply and demand?
Marriott are affected by supply and demand because if people do not demand the service of a
hotel then the hotel would not be able to supply the service to the customer/people. If demand
goes down for Marriott hotel then Marriott would not be able to make as much money or
would have to make their products cheaper in order to get customers to come to their hotel,
which would lead to them having a decreased profit.
What does the term GDP mean?
GDP means ‘Gross Domestic Product’. GDP is the monetary value of all the finished goods and
services produced within a country's borders in a specific time period. Though GDP is usually
calculated on an annual basis, it can be calculated on a quarterly basis as well. The GDP is one of the
primary indicators used to gauge the health of a country's economy. It represents the total dollar value
of all goods and services produced over a specific time period; you can think of it as the size of the
economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if
the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the
last year. Measuring GDP is complicated, but at its most basic, the calculation can be done in one of
two ways: either by adding up what everyone earned in a year, or by adding up what everyone spent.
What is meant by the term recession, why does it matter and how are Marriott
affected?
A Recession is a slowdown in economic activities. A significant fall in spending would
usually lead to a recession. A recession means a fall in GDP. A recession would be
characterized by high unemployment, falling average incomes, increased inequality and
higher government borrowing. The impact of a recession depends on how long it lasts and
how low the fall goes. The great recession of 2008-12 has shown many of the negative
impacts of recession. Marriott hotel is affected by a recession because during a recession, a
lot of people tend to cut out their luxury spending’s which would be going out to hotels or
going to restaurants which would lower Marriott’s income as they won’t have as many
customers.
What is meant by the term economic growth and why does it matter?
Economic growth is an increase in the amount of goods and services produced per head of the
population over a period of time. If there is economic growth, businesses make more money
as well as customers save more money.
What is meant by the term economic ripple effect?
A ripple effect is a situation where ripples expand across the water when an object is dropped
into it; it is an effect from an initial state that can be followed outwards. Examples can be
found in economics where an individual's reduction in spending reduces the incomes of
others and their ability to spend. In economics it is an indirect effect that spreads out from the
direct or main effect to reach areas or population far removed from its intended or original purpose or
target.
How are Marriott affected by supply and demand?
Marriott are affected by supply and demand because if people do not demand the service of a
hotel then the hotel would not be able to supply the service to the customer/people. If demand
goes down for Marriott hotel then Marriott would not be able to make as much money or
would have to make their products cheaper in order to get customers to come to their hotel,
which would lead to them having a decreased profit.
What does the term GDP mean?
GDP means ‘Gross Domestic Product’. GDP is the monetary value of all the finished goods and
services produced within a country's borders in a specific time period. Though GDP is usually
calculated on an annual basis, it can be calculated on a quarterly basis as well. The GDP is one of the
primary indicators used to gauge the health of a country's economy. It represents the total dollar value
of all goods and services produced over a specific time period; you can think of it as the size of the
economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if
the year-to-year GDP is up 3%, this is thought to mean that the economy has grown by 3% over the
last year. Measuring GDP is complicated, but at its most basic, the calculation can be done in one of
two ways: either by adding up what everyone earned in a year, or by adding up what everyone spent.
