Question

1.Describe the three principle indicators to determine how well the country’s economy is doing.

2.Describe what the concept excess burden means, and how it measures tax inefficiency.

3. Describe the three key elements that result in globalization.

4. Describe the major field of economics called macroeconomics.

5. What are the four types of free market competition?

6. What is the minimum wage law? Provide an example of a minimum wage.

Answer 1

Growth in manufacturing sector, gdp growth rate and inflation

B deadweight burden means loss in efficiency cause by tax. It measures inefficiency It measures inefficiency by measuring how far economy has reached from pareto efficiency

C The three main reasons are improved transport, improved technology which makes it easier to communicate and increased labour and capital mobility.

Macroeconomics is field of economics which deals with study of aggregate variables that pertain to whole economy

D perfect competition, monopoly, monopolistic competition, oligopoly

E Minimum wage laws stipulates the lowest wage that should be paid to labour in order to avoid exploitation of labour and to improve labour welfare. E. G minimum wage (federal) in USA is 7.25 dollars