Aid can become an obstacle to development because of the tied nature of much aid, which benefits the donor country more than the recipient, in economic terms. Tied aid is bilateral aid in which the donor country specifies conditions relating to the way the money is spent. This often involved spending money on goods and services from the donor country. Aid is also an obstacle to development because of the frequently inappropriate use of aid on large capital intensive projects which may actually worsen the conditions of the poorest people. The strengthening of political ties as a result of bilateral aid may increase dependency and hinder democracy in the recipient country.
Purchasing Power Parity (PPP) is also not taken into account with income per capita; this means that the cost of living in each country is not accounted for so development may appear better in some countries than it actually is. Income per capita can be used to measure the economic and social development, but not any of the other factors of development, such as environmental development. Development can be further measured by income inequality. This can be a useful measurement as it shows the differences between the rich and poor. The greater the inequality, gap between the rich and poor, the worse developed the country is.
Immigration Tariffs Make Good Economic Sense Emigrants moving to wealthier countries have historically been able to do so at very little or no cost. This has led to inefficiency in the allocation of resources. As Economist Gary Becker stated in his lecture to the Institute of Economic Affairs, there would be economic gains to be made by imposing an immigration tariff on immigrants who are granted work visas by the wealthy nations of the world. The economic concepts involved in Mr. Becker’s proposal include the basic principles of supply and demand, opportunity cost, and human capital. He proposes to create a market within the immigration systems of wealthier countries.
et powerECO204: Homework Assignment 3 1. True, False, Uncertain a. A firm that enjoys economic rents earns higher economic profits than other firms without the economic rents. b. Relative to the perfectly competitive equilibrium, the equilibrium outcome for a market dominated by a monopsonist will be higher prices and lower levels of good demanded.
If we do not buy imported goods then they will not buy ours and without export revenue and foreign investments we would not be able to function financially. When exports increase so does the Gross Domestic Product (GDP). GDP is the dollar amount of all goods and services produced within the United States. When the GDP is high it signifies that our economy is healthy and stable. When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate.
When the government prevents prices from adjusting naturally to supply and demand, efficiency is improved in the economy. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxviii]. A market economy cannot possibly produce a socially desirable outcome because individuals are motivated by their own selfish interests. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxix]. While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity.
economy firms advertise to make already established goods and services seem more desirable and shift the demand curve to the right. Does the amount of spent on advertising by firms create benefits for consumers? The benefit I believe is the fact the consumer is aware the product exists. The true benefit is for the firms who are advertising, especially if they have a successful campaign. Should pharmaceutical companies be allowed to charge high prices for life saving drugs?
Federal subsidies are a contentious point in public economics. They are supposed to benefit small businesses in theory but in reality large corporations are usually the ones that gain the most. This paper seeks to determine if there is any advantage to granting federal subsidies. An analysis of the impact federal subsidies (independent variable) have on the amount of corporate taxes paid (dependent variable) will determine the extent of the social benefits of subsidies. Subsidies in effect lower the cost of production which implies that, other things equal, profits should increase for a given quantity of output.
The reason being as more of a certain good is consumed, it will begin to provide less utility to the consumer. This means that and extra $1 income would be of more worth to a low income earner than to a high income earner. This suggests that a more equal distribution of income will be beneficial to the total utility. Unfortunately, it is extremely to gain an accurate assessment of relative
On the other hand, in Taiwan, the minimum wage is only around $4.00, and it is not easy to find a job. This comparison indicates that the relation between the price of the minimum wage and unemployment rate is not strongly direct proportional. In conclusion, setting a minimum wage might have some negative effects, such as, creating a surplus of potential workers who cannot find jobs, but due to all the good facts which people are able to gain from the minimum wage, I believe the benefits of minimum wage are worth the