INTERNATIONAL EDITION---Essentials of Economics, 10th edition
INTERNATIONAL EDITION---Essentials of Economics, 10th edition
10th Edition
ISBN: 9781259696008
Author: Bradley R. Schiller
Publisher: MCG
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Chapter 1, Problem 7QFD
To determine

To explain: The implications of increase in taxes on willingness to work and on the total output.

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How can an economy increase the production of one good without reducing the production of another? Identify at least three factors that contribute to this increase and explain how they contribute to the increase.
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In the 1990s, developed countries agreed to double their aid to Africa by 2015. A report by the United Nations conference on Trade and Development noted that sceptics had raised concerns about how much effect the doubling of aid would have on output and incomes in Africa, if the quantity of other inputs such as human capacity and institutions were to remain fixed. It also pointed to the divisions between the sceptics with some suggesting the return would diminish when aid reached only 4% of GDP, while others thought they would diminish only when it had reached 50%. It should be added that even if the returns do begin to diminish, they could still be very important.In 1887, Cecil Rhodes created the De Beers Consolidated mines Company, which controlled about 90% of the total world supply of rough uncut diamonds with its South African mines. Until 2001, De Beers produced about half of the world’s diamonds in its mines and marketed about 80% of the world’s diamonds. Diamond producing…
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