Why do price ceilings below market price create shortages? Explain why firms decrease supply in a market whenever resource prices rise. Why does the government give tax incentives for businesses? Why economists oppose policies that restrict trade among nations?
Why do economists argue that property tax is better for a community than a payroll tax? Explain. Explain why imposing a tariff causes a net welfare loss to the domestic economy. Why does a sales tax shift a supply curve up and why can't the seller always raise prices by th...
Why do economists urge to keep borrowing to stimulate the economy when it is already well established that high debt levels slow down economic growth? Why is it important for the government to measure the economy? Why is fiscal policy so hard to make? Who makes it? What are the goals of...
This means that once export workers get paid, they also spend their money to consume goods and services. This leads to even more job creation. As a result, the entire economy develops. Economists often cite the example of China while explaining this point. The unemployment rate in China has ...
Other stakeholders have a role to play, too. How do companies, labor organizations, and even economists respond to the challenge of restarting productivity growth in a digital age? Companies will need to develop a productivity strategy that includes thedigital transformation of their business modelas...
aFor most economists, the root causes of corruption lie in the delegation of power. It is the discretionary use of that power and the often monopolistic position public agents enjoy when dealing with contracts which make corruption possible. The incentives and opportunities for corruption depend on...
Slugabed. slowpoke. Idler. Loafer.The English language has many evocative terms for those seen asworkshy. British politicians havemade hearty use of themwhen debatingeconomic inactivity.Economists, however, used to point out that Britain had a good record on this score. For two decades until 2019...
cannot evolve easily and therefore may remain locked-in, despite external pressures or incentives to formalize. The study shows that efforts to overcome informality and reaping the benefits of formalized market structures cannot be done without taking cognizance of the sticky intangible knowledge on whic...
There are mainly two reasons why economists sometimes offer conflicting advice to policymakers. Economists might have different values regarding a...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our experts can answer your tough homework...
Expansionary policy is also popular—to a dangerous degree, say some economists. Fiscal stimulus is politically difficult to reverse. Whether it has the desired macroeconomic effects or not, voters like low taxes and public spending. Due to the political incentives faced by policymakers, there tends...