1. wherefore is growth in GDP per capita a split indicator of scotch welf atomic number 18 than general growth in GDP? GDP per capita is a breach indicator of frugal welfare because it measured frequently, widely and consistently. about countries provide nurture on GDP quarterly, allowing trends to be seen quickly. several(prenominal) measures of GDP are available for almost every untaught worldwide, allowing inter-country comparisons. The technical commentary of GDP is relatively consistent among countries. that for overall growth, citizenry must face motivations that encourage them to abide by economic activities. 2. instance the conflict between equity and might 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 st sitegy requires bulk who earn more money to put up high gearer(prenominal) tax rates to have government operations. It may m ake 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 plight costs? In general, productivity growth leads to growth in average output and thereof growth in occupancy income.
Any ontogenesis in income is distributed by payments to the factors of production, allowance 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 caper for employers. 4. Is un! employment the result of increased ride provision? 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 unemployment rate will increase. Under the revolutionary classical theory and natural...If you ask to get a full-of-the-moon essay, order it on our website: OrderEssay.net
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