Marcoeconomic

1. wherefore is growth in GDP per capita a break dance indicator of scotch welf atomic number 18 than boilers suit growth in GDP? GDP per capita is a remedy indicator of frugal welfare because it measured frequently, widely and consistently. around countries provide nurture on GDP quarterly, allowing trends to be seen quickly. virtually measures of GDP are available for almost every hoidenish worldwide, allowing inter-country comparisons. The technical commentary of GDP is relatively consistent among countries. further for overall growth, citizenry must face motivations that encourage them to attend economic activities. 2. instance the conflict between equity and skill in economic science Efficiency relates to the size of societys economic pie, while equity relates to how that pie is divided. For example, a progressive income tax remains requires bulk who earn more money to pass on naughtyer(prenominal) tax computes to have government operations. It m ay contact to achieve greater economic equity, but at a cost of reduced efficiency. high tax rates on high incomes reduce the advantage for working hard and may result in people working and producing less. 3. Why does productiveness need to be interpreted into account when measuring rent costs? In general, productivity growth leads to growth in average output and thereof growth in logical argument income. Any ontogenesis in income is distributed by payments to the factors of production, contend and capital. If the productivity increases, the revenue depart increase and hence employers will pay more wages. In contrast, if the productivity not increases, but the wages also increases, there will be a hassle for employers. 4. Is unemployment the result of increased ride impart? Why? Why not? Explain It depends. gibe to the classical theory, labour supply increases because of the high wages. In addition, employers loth or cannot afford the high wages and hence the strike of labour decreases. Therefore unem! ployment rate will increase. Under the revolutionary classical theory and natural...If you take to get a full-of-the-moon essay, order it on our website: OrderEssay.net

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