Questions from General Economics

Q: The great 18th-century economist Adam Smith wrote, “Little

The great 18th-century economist Adam Smith wrote, “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable adminis...

Q: Most countries, including the United States, import substantial amounts of

Most countries, including the United States, import substantial amounts of goods and services from other countries. Yet the chapter says that a nation can enjoy a high standard of living only if it ca...

Q: Suppose that society decided to reduce consumption and increase investment.

Suppose that society decided to reduce consumption and increase investment. a. How would this change affect economic growth? b. What groups in society would benefit from this change? What groups might...

Q: List and describe four determinants of productivity

List and describe four determinants of productivity

Q: Explain how higher saving leads to a higher standard of living.

Explain how higher saving leads to a higher standard of living. What might deter a policymaker from trying to raise the rate of saving?

Q: Does a higher rate of saving lead to higher growth temporarily or

Does a higher rate of saving lead to higher growth temporarily or indefinitely?

Q: What does the level of a nation’s GDP measure? What does

What does the level of a nation’s GDP measure? What does the growth rate of GDP measure? Would you rather live in a nation with a high level of GDP and a low growth rate or in a nation with a low leve...

Q: List and describe four determinants of a country’s productivity

List and describe four determinants of a country’s productivity

Q: Describe three ways a government policymaker can try to raise the growth

Describe three ways a government policymaker can try to raise the growth in living standards in a society. Are there any drawbacks to these policies?

Q: During the 1980s, 1990s, and the first decade of the

During the 1980s, 1990s, and the first decade of the 21st century, the United States experienced a significant inflow of capital from abroad. For example, Toyota, BMW, and other foreign car companies...