Question

Describe 4 ways in which a government policymaker can try to raise the growth in living standards in society and are there any drawbacks to these policies?

Answer 1

4 ways in which a government policy maker can try to raise the growth in living standards include :

• Encouraging investments from abroad : this leads to increased standards of living for the people

Drawback : some of the benefits of investment ate utilized by foreigners themselves

• Investing more current resources in the production of capital like the assets they posses (land, house, capital)

Drawback : reduces the resource used for producing current consumption

• Protecting properly rights and promoting stability

Drawback : this leads to enforcement cost for enforcing these policies and rules

• Increasing education for improving living standards

Drawback: leads to opportunity cost in which students are not engaged I'm current production