Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506756
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 16, Problem 2CQ
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Use a production-possibility curve to show how resource growth and improvement in technology can allow a nation to increase its production of government goods and services while also increasing its output of private goods and services.
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Macroeconomics: Private and Public Choice (MindTap Course List)
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- Explain why converging economies may present a strong argument for limiting flows of capital but not for limiting trade.arrow_forwardFinancial development, social capital, favourable business regulation, trade openness are different aspects of ‘social capability’ influencing innovation processes and, therefore, economic development. Make a ranking of these factors according to their observed degree of importance for economic development. Explain why ‘inclusiveness’ and ‘equality in opportunities’ can strengthen the innovation capability of an economy.arrow_forwardSome resource-rich countries have succeeded in converting resource wealth into longterm and equitable economic development, while many others have not. Natural resources have played a fundamental role in the growth of several industrialized economies, including Germany and the United Kingdom, where coal and iron ore deposits were a precondition for the Industrial Revolution. The United States was the world’s leading mineral economy from the mid-nineteenth to the mid-twentieth century and in the same period became the world’s leader in manufacturing (van der Ploeg 2011). More recently, countries such as Botswana, Chile, and Norway have used abundant oil and mineral resources as the foundation for economic growth. Discuss in depth, based on your understanding of the various sources of fiscal risks what complicates fiscal management in resource rich countries. Taking Zambia as a case study, suggest ways in which these risks can be managed.arrow_forward
- The theories of absolute and comparative advantage have been offered as an economic rationale for trade between and among regions and countries. Compare and contrast the two concepts. Which of the two do you think is more important for explaining the growth in global trade during the last 25 years? Why” The size of a country’s population and the associated age distribution can be causal factors for economic growth. Why is the size of the population important to economic development? Can size be a disadvantage? Why is age distribution important?arrow_forwardDiscuss using empirical evidence whether international trade leads to economic growth.arrow_forwardSuppose labor and capital are the only two factors of production. If Malaysia has 3% of the world’s capital resources and 1% of the world’s income, then Malaysia would be considered a. relatively more abundant in the land b. an emerging market economy c. a capital-abundant country d. a labor-abundant countryarrow_forward
- Explain the policies that can be carried out by the central and local governments in developing investments for the welfare of the community!arrow_forwarddiscuss three policies that can facilitate economic growth in the caribbeanarrow_forwardExplain how economic growth and international trade increase consumption possibilities.arrow_forward
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