Is saying that “there is growing income inequality” just another way of saying that “the rich are getting richer, and the poor are getting poorer”? Explain your answer
What will be an ideal response?
The answer depends on whether the issue is looked at from a relative or absolute perspective. In absolute terms, the answer is no. Both the rich and the poor are getting richer in terms of absolute income. In relative terms, the answer is yes. In this case, what has happened is that although incomes have risen in all income quin tiles, the income growth has been fastest in the top quin tile.
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If a country runs a current account surplus and national private savings equals domestic investment, then the combined governmental accounts
A) must be balanced. B) must be positive. C) must be negative. D) could be either negative or positive, depending on the capital account. E) could be either negative or positive, depending on the net international investment position.
Explain the relationships between the marginal product of labor and the demand for labor, and the marginal product of capital and the demand for capital
What will be an ideal response?
Assuming a fixed exchange rate, a decrease in U.S. prices relative to European prices will:
a. decrease European exports to the United States. b. increase U.S. imports from Europe. c. decrease aggregate spending in the U.S. d. not affect U.S. exports or imports. e. raise the purchasing power of U.S. consumers.
Among development economists, the big-push refers to
a. the traditional process of economic dualism that forces workers to move from low-wage to high-wage sectors b. an integrated network of government-sponsored and financed investments that are introduced to LDCs all at once c. the political instability in LDCs that puts pressure on existing governments to achieve economic goals d. a strategy of limiting international trade in LDCs in order to protect new industries e. a situation in which there are many economists competing for a limited number of jobs advising LDCs