Question

Answer the following questions thoroughly, making sure to completely label any graphs used. Explanations should be a minimum of 5-6 sentences each.

o Explain why Economic Growth is a necessity for a society. Why is it important to understand why we need Economic Growth, but also why too much Growth may be equally detrimental as not enough Growth?

Your answer should reference any/all of the following:

Biltmore Estate and the lifestyle of that time period

** NPR video “Planet Money Makes a T-shirt”

NPR segments on Easter Island

** CBS Segment “The Ripple Effect”

** 60 Minutes “Buy American Clause”

o Create a properly labeled Circular Flow Diagram. Using examples from the asterisked videos referenced in the previous question, describe where the various companies/components fit into the CFD and how the actions/behaviors being discussed influence the flow of money through an economy.

o True or False:

In the absence of government regulation on employment conditions and wage rates, employers would reduce pay to negligible levels. Provide an explanation for your answer.

Answer 1

Answering only first one as these are separate and independent questions.

1) . Economic growth is important for society as society needs to improve its living standards both for the current population as well as support the population being added. Many problems relating to living can be solved only by economic growth. Also the growth so generated, allows taxes to be paid which takes care of education, healthcare, elderly care etc.

However, too much growth might lead to high income inequality if the rewards of the growth are not distributed equitably. Also, it has detrimental effects on the environment.