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- Why does Marx’s concept of ‘primitive accumulation’ contradict Smith’s view on the origins of wealth? Identify and summarize 2 arguments.How would the classical views on the creation of wealth differ from those of the mercantilists?How Adam Smith viewed wealth, what constitutes it and how can it be attained? What are the differences and similarity of Adam Smith with other Classical Economists?
- How Parson Malthus viewed wealth, what constitutes it and how can it be attained? What are the differences and similarity of Parson Malthus with other Classical Economists?Suggest solutions to the five limitations of the golden rule ofcapital accumulation.The US government announced on October 14th, 2020 that Social Security checks for all US seniors will rise by 5.8% in 2022, the largest increase since 2008. This cost of living adjustment (COLA) is based on the Consumer Price Index measure of inflation in 2021. a). Show with a graph and a model how, in theory, giving seniors the full 5.8% increase will actually make a representative senior better off in 2022 as compared to 2021. If lifespan projections are roughly correct, it is expected that our 52 million current seniors over age 65 is expected to rise by 60% over the next 25 years to about 80 million seniors. Medicaid, Medicare and Social Security are currently 12% of GDP, but expected to rise to 17% of GDP by year 2044.b). Could this enormous increase in spending on seniors have an effect on either US market efficiency or productivity in as we move toward the year 2044?
- Consider a simple model where workers can be either employed or unemployed. Suppose the labour force is L = 300 million workers, the job separation rate is 4% per month and the job finding rate is 36% per month. Which of the following is true?Group of answer choices In steady state, fewer workers are losing their jobs than there are unemployed workers finding a job In steady state, 108 million workers are employed None of the other options In steady state, 12 million workers are unemployedMULTIPLE CHOICE (identify the one best answer below and provide a justification for each of the five options):Suppose that the LFS data show the number of employed has decreased by 2,000. Then you know with certaintythat:a. Exactly 2,000 people previously employed lost a job.b. The participation rate has not changed.c. The unemployment rate has increased.d. The size of the labour force has decreased.e. None of the above.Hint: remember that the LFS is a snapshot in time, i.e. it shows the number of people in each category at a certaindate, but it does not show flows of people from one category to another during a certain period. Also, the ‘withcertainty’ bit in any question is important, the answers may be different from the case of ‘likely’ or ‘possibly’.MULTIPLE CHOICE (identify the one best answer below and provide a justification for each of the five options): Suppose that the LFS data show the number of employed has decreased by 2,000. Then you know with certaintythat: a.Exactly 2,000 people previously employed lost a job. b.The participation rate has not changed. c.The unemployment rate has increased. d.The size of the labour force has decreased. e.None of the above. Hint: remember that the LFS is a snapshot in time, i.e. it shows the number of people in each category at a certain date, but it does not show flows of people from one category to another during a certain period. Also, the ‘with certainty’ bit in any question is important, the answers may be different from the case of ‘likely’ or ‘possibly’.
- How David Ricardo viewed wealth, what constitutes it and how can it be attained? What are the differences and similarity of David Ricardo with other Classical Economists?"Human capital theory is not so much wrong as it is incomplete." Explain this statement. What does the theory leave out? What are the strengths of the theory? What questionable assumptions does it make?Do you think perfect indexing is possible? Why or why not?