ESSENTIALS OF ECONOMICS
11th Edition
ISBN: 9781260225334
Author: SCHILLER
Publisher: RENT MCG
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 7QFD
To determine
To explain: The implications of increase in taxes on willingness to work and on the total output.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
If output rises by 35 percent while hours of work increase by 40 percent, has productivity increased or decreased? By how much?
Why are many people now living at the highest level of material prosperity in history? Is this level of consumption sustainable? How can we consume less while improving our quality of life?
In the 1990s, developed countries agreed to double their aid to Africa by 2015. A report by the United Nations conference on Trade and Development noted that sceptics had raised concerns about how much effect the doubling of aid would have on output and incomes in Africa, if the quantity of other inputs such as human capacity and institutions were to remain fixed. It also pointed to the divisions between the sceptics with some suggesting the return would diminish when aid reached only 4% of GDP, while others thought they would diminish only when it had reached 50%. It should be added that even if the returns do begin to diminish, they could still be very important.In 1887, Cecil Rhodes created the De Beers Consolidated mines Company, which controlled about 90% of the total world supply of rough uncut diamonds with its South African mines. Until 2001, De Beers produced about half of the world’s diamonds in its mines and marketed about 80% of the world’s diamonds. Diamond producing…
Knowledge Booster
Similar questions
- For a high-income economy like the United States, what element of the aggregate production function are most important in bringing about growth in per capita GDP? What about the middle-income country such as Brazil? A low-income country such as Niger?arrow_forwardHello, Can you explain? Can a technological advancement in sector “ X” of the economy affect the number of people who work in sector “Y” of the economy? Explain.arrow_forwardWhat is the central economic proplem?arrow_forward
- Assume that an economy has 1,000 workers, each working 2,000 hours per year. If the average real output per worker-hour is $20, then total output, or real GDP, will bearrow_forwardCompare both the classical and modern theory of the economic activities of the statearrow_forwardHow does investment as defined by economists differ from investment as defined by the general public?arrow_forward
- Which of the following is a desirable feature in an economy? Group of answer choices low inflation low unemployment rapid increase in output per worker all of the abovearrow_forwardHow have total output and output per worker changed over time in theUnited States? How have these changes affected the lives of typical people?arrow_forwardDetermine if the following statement is normative or positive: The government expenditure towards infrastructure, research and development and skills and jobs-training programs increases future productivity resulting in rising future output (i.e. GDP).arrow_forward
- Suppose that real GDP is currently $97 billion peryear and natural real GDP is currently $100 billion. what is the GDPgap?arrow_forwardAssume that a economy holds two factors of production, human capital managed by native-born workers and low skilled employees. If large migration of low skilled migrants occurs, how will the influence the aggregate GDP of the native population?arrow_forwardFor a high-income economy like Australia, what aggregate production function elements are most important in bringing about growth in GDP per capita? What about a middleincome country such as India? A low-income country such as Afghanistan?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning