8. Identify following arguments about economic ing either anti-growth or pro-gro

Question

8. Identify following arguments about economic ing either anti-growth or pro-growth. LO8.6 a. Growth means worker burnout and frantic schedules. Rising incomes allow people to buy more education, medical care, and recreation. c. The Earth has only finite amounts of natural resources. d. We still have poverty, homelessness, and discrimination e. Richer countries spend more money protecting the f. Natural resource prices have fallen rather than increased even in the richest countries environment. over time.

Explanation / Answer

a. Anti-Growth. This is because if the workers' burnout and the schedules are not appropriate then the marginal productivity of labor will keep reducing over time and eventually the laborers will have really low levels of productivity. This, in turn, will lead to the low overall productivity of output and thus anti-growth in nature.

b. Pro-Growth. Better education, medical care and recreation would mean that the productivity of laborers will increase and thus every unit of labor will produce more units of output, and thus higher productivity.

c. Anti-Growth. Finite amounts of resources means that resources have to be used carefully and thus the full and efficient use of these resources does not take place.

d. Anti-Growth. Poverty, homelessness and discrimination in rich countries could lead to civil unrest, thereby affecting the day to day economic activities and thus the total output level in the economy.

e. Pro-Growth. This is because better environmental conditions would mean more healthy workforce, which in turn means more productive workforce and thus higher aggregate output being produced in the economy.

f. Pro-Growth. One reason for fall in natural resources price could be that more of natural resources have been discovered due to betterment in technology.

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