1. How has the educational system affected the quality of our labor force? 2. Ex
ID: 1193467 • Letter: 1
Question
1. How has the educational system affected the quality of our labor force?
2. Explain the Malthusian theory of population. Is it relevant today anywhere in the world? Explain where and why.
3. How does the American savings rate compare to that of other leading industrial nations? What accounts for the difference?
4. What changes took place during the Industrial Revolution that made possible sustained economic growth?
5. If you were hired as an efficiency consultant by a large corporation, list the measures you might take to raise the productivity of the workers.
6. What is wrong with having tariffs and quotas? Which is the lesser of the two evils, and why?
Explanation / Answer
1.A well educated labor force is widely recognized as beneficial to local economic growth and development.A high level of human capital is hypothesized to contribute to more rapid local economic development through a number of channels. First, additional human capital enhances the ability of local business to adopt superior technologies and respond to changing economic conditions ,a well-educated labor force improved a community’s chances of attracting new businesses to the area . Labor force quality was especially important in the attraction of establishments in high technology industries and businesses with significant employment in skilled and technical occupations. Third, entrepreneurial activity and small business development in a community benefited from the availability of skilled people in management, technical, and entry-level positions. A well educated labor force was a critical component to the economic climate conducive to the development, attraction, and retention of entrepreneurs.
In addition to the direct effects of human capital on firm productivity, a well educated labor force also facilitated the generation of external economies that promote local development. A well-educated labor force may enhance the level of social capital in the community .A direct role for local school quality in enhancing the educational level of the local labor force requires that: (1) schools influence student educational attainment, and (2) the more highly educated students remain in (or return to) the area after attending college. Local school quality may play a more “indirect” role in improving labor force quality if highly educated individuals are attracted to areas with “good” schools.
Thus from the above we can conclude that the educational system affected the quality of our labor force.
2.The Malthusian theory explains the relationship between the growth in food supply and in population. It states that population increases faster than food supply and if unchecked leads to vice or misery.
The Malthusian doctrine is stated as follows:
(1) There is a natural sex instinct in human beings to increase at a fast rate. As a result, population increases in geometrical progression and if unchecked doubles itself every 25 years.
(2) On the other hand, the food supply increases in a slow arithmetical progression due to the operation of the law of diminishing returns based on the supposition that the supply of land is constant.
(3) Since population increases in geometrical progression and the food supply in arithmetical progression, population tends to outrun food supply. Thus an imbalance is created which leads to over-population.
(4) To control over-population resulting from the imbalance between population and food supply, Malthus suggested preventive checks and positive checks.
The preventive checks are applied by a man to control the birth rate. They are foresight, late marriage, celibacy, moral restraint, etc.
If people fail to check growth of population by the adoption of preventive checks, positive checks operate in the form of vice, misery, famine, war, disease, pestilence, floods and other natural calamities which tend to reduce population and thereby bring a balance with food supply.
The Malthusian theory is not applicable to countries for which this was propounded. In the western European countries, the bogey and pessimism of Malthus has been overcome. His prophecy that misery will stalk these countries if they fail to check the growth of population through preventive checks has been proved wrong by a decline in birth rate, adequacy of food supply, and increase in agricultural and industrial production. Thus Malthus has proved to be a false prophet.
Despite these weaknesses, the Malthusian doctrine contains much truth. The Malthusian doctrine may not be applicable to the Western Europe and England but its principal tools have become the part and parcel of the people of these countries. If these lands do not face the problems of over-population and misery, it is all due to the bogey and pessimism of Malthusianism.
In fact, the people of Europe were made wiser by Malthus who forewarned them of the evils of over-population and they started adopting measurers toward it off. The very fact that people use preventive checks, like late marriage and various contraceptives and birth control measures on an extensive scale proves the vitality of the Malthusian law.
3.The Industrial Revolution was the transition to new manufacturing processes in the period from about 1760 to sometime between 1820 and 1840.The Industrial Revolution marks a major turning point in history; almost every aspect of daily life was influenced in some way.In particular, average income and population began to exhibit unprecedented sustained growth.
The commencement of the Industrial Revolution is closely linked to a small number of innovations in the field of Textiles ,Steam power ,Iron making.Industrial Revolution has encouraged improvement in Standards of living,Food and nutrition ,Clothing and consumer goods ,Social structure and working conditions,Factories and urbanization.
5.Improving productivity means improving gross revenues and profits. As a consultant , finding ways to improve productivity may mean making adjustments in employee training, modernizing equipment or creating motivational incentives to boost employee morale and energy.
6.Quotas are usually employed to protect infant industries and keep market entry costs low for domestic producers. Often the quotas last long after the industry has matured. Other uses for quotas are to protect strategic industries such as defense and agriculture. In market environments where imports are on the rise, quotas are more protective than tariffs. When one country uses quotas, its trading partners do the same and cite the same reasons. The end result is less exporting opportunity for all producers and higher prices for all consumers. Quotas are also cumbersome for the country using them. They require a lot of paperwork indicating exact amounts of products for each country facing a quota. It is also difficult to measure the precise degree of protection quotas offer.
Tariffs raise the price of imports. This impacts consumers in the country applying the tariff in the form of costlier imports. When trading partners retaliate with their own tariffs, it raises the cost of doing business for exporting industries. Some analyst believe that tariffs cause a decrease in product quality. Businesses look for ways to cut production costs to account for tariffs. Tariffs are more transparent and easier to administer than quotas. This makes it easier for trading partners to negotiate them down or eliminate them.
High tariffs and quotas can result in trade wars between nations. The European Union and China were involved in a trade dispute over textiles that delayed an agreement that expired in 2005. The United States' high tariffs on auto parts are said to be a sticking point in a number of trade agreement negotiations. These disagreements hurt the incomes of each country involved in the disputes. Trade only works when countries import and export.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.