Ask Microeconomics Expert

What are the Policies and Long-Run Growth

In many concerns it is decidedly odd that world distribution of output per worker is as unequal as it is. Migration, World trade and flows of capital must all work to take resources and consumption goods from where they are cheap to where they are dear. As they travel with increasing volume and increasing speed as communication and transportation costs fall, these commodity and factor-of-production flows must erode differences in productivity and living standards between national economies. Furthermore most of the edge in productivity and standards of living levels held by the industrial core is no one's private property however instead the common intellectual and scientific heritage of humankind. Therefore every poor economy has an excellent opportunity to catch up with the rich by adopting and adapting from this open storehouse of modern machine technology.

We can view this certain glass either as half empty or as half full. Half full is that much of world that has already made the transition to sustained economic growth. Most people today live in economies that, while far poorer than leading-edge post-industrial nations of world's economic core, have successfully climbed onto escalator of economic growth and so the escalator to modernity. Economic transformation of most of the world is less than a century behind economic transformation of leading-edge economies-just an eye blink behind from the perspective of the six millennia since the spread of agriculture out of Middle East's Fertile Crescent.

Furthermore perhaps we can look forward to a future in that convergence of relative income levels will finally begin to occur. The bulk of humanity is now achieving material standards of living at which demographic transition takes control. As population growth rates in developing countries fall then their capital-output ratios will begin to rise rapidly. And--with tolerable government, better ways of achieving an education and reasonable security of property --their material standards of living and output per worker levels will converge to world's leading edge.

Half empty is that we live today in most unequal--in terms of divergence in the life prospects of children born into various economies--age that world has ever seen. Today one and a half billion people live in economies that haven't made the transition to intensive economic growth and haven't climbed onto the escalator to modernity. It is very hard to argue that median inhabitant of Africa is any better off in material terms than his or her counterpart of a generation before.

 

 

 

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9575291

Have any Question?


Related Questions in Microeconomics

Question show the market for cigarettes in equilibrium

Question: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in public. Label the equilibrium private market price and quantity as Pm and Qm. Add whatever is needed to the mode ...

Question recycling is a relatively inexpensive solution to

Question: Recycling is a relatively inexpensive solution to much of the environmental contamination from plastics, glass, and other waste materials. Is it a sound policy to make it mandatory for everybody to recycle? The ...

Question consider two ways of protecting elephants from

Question: Consider two ways of protecting elephants from poachers in African countries. In one approach, the government sets up enormous national parks that have sufficient habitat for elephants to thrive and forbids all ...

Question suppose you want to put a dollar value on the

Question: Suppose you want to put a dollar value on the external costs of carbon emissions from a power plant. What information or data would you obtain to measure the external [not social] cost? The response must be typ ...

Question in the tradeoff between economic output and

Question: In the tradeoff between economic output and environmental protection, what do the combinations on the protection possibility curve represent? The response must be typed, single spaced, must be in times new roma ...

Question consider the case of global environmental problems

Question: Consider the case of global environmental problems that spill across international borders as a prisoner's dilemma of the sort studied in Monopolistic Competition and Oligopoly. Say that there are two countries ...

Question consider two approaches to reducing emissions of

Question: Consider two approaches to reducing emissions of CO2 into the environment from manufacturing industries in the United States. In the first approach, the U.S. government makes it a policy to use only predetermin ...

Question the state of colorado requires oil and gas

Question: The state of Colorado requires oil and gas companies who use fracking techniques to return the land to its original condition after the oil and gas extractions. Table 12.9 shows the total cost and total benefit ...

Question suppose a city releases 16 million gallons of raw

Question: Suppose a city releases 16 million gallons of raw sewage into a nearby lake. Table shows the total costs of cleaning up the sewage to different levels, together with the total benefits of doing so. (Benefits in ...

Question four firms called elm maple oak and cherry produce

Question: Four firms called Elm, Maple, Oak, and Cherry, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 sho ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As