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Q1. The advent of one man bus comprised more capital equipment: An automatically operated coin box and door control device - to name two of the capital goods which replaced the conductor.

a) Is this a case of the capital replacing labor? Where?

b) Is this a case of the labor replacing labor? Where?

Q2. Assess the given statement:

a) Taiwanese labor is far less productive than the American labor as evidenced by the fact it takes so much of it to get things done ex: it might take three or four Taiwanese to do a job completed by one American;

b) American agricultural land is less fertile than the Taiwan land as evidenced by the lower yield per acre in the U.S. Separately assess both the statements.

Q3. Suppose that you are a member of a minority group in some country and have reason to doubt that your property rights would be imposed and respected in the community.

a) What forms of capital would you invest in?

b) What types of skills would you encourage for your children?

c) Do you know any evidence of such actual behavior through minority groups?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M910153

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