Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Chapter 12, Problem 10P
To determine
To explain:
The consequence on the
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Exploring Macroeconomics
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- Property rights are a crucial part of a functioning market economy and economic growth. Consider the difference between cows and endangered species of animals. How do property rights prevent cows from becoming extinct? If it were legal to buy and sell endangered species, would it help them recover? Why or why not? How do property rights help to allocate resources to their best uses?arrow_forwardSome less-developed nations are unable to devote resources to various research and development projects. Attempting to increase their economic growth, sometimes they acquire pharmaceutical or technological goods and reverse engineer them to determine how they’re made, then sell them in domestic markets. Is it ethical and/or necessary to produce and sell a product without having developed it and not having a patent for the product? What could be the short run and long run consequences of such an action?arrow_forwardWhat does this mean? “Capitalism is the supreme expression of human creativity and freedom, an economy of mind overcoming the constraints of material power. It is dynamic, a force that pushes human enterprise down spirals of declining costs and greater abundance. The cost of capturing technology is mastery of the underlying science. The means of production of entrepreneurs are not land, labor, or capital but minds and hearts.”arrow_forward
- Explain the importance of the economic environment to business and identify the factors used to evaluate the performance of an economic system.arrow_forwardIn 1776, Adam Smith ([1776] 1936) published his treatise, An Inquiry into Nature and Causes of the Wealth of Nations , which was taken by many to be a theory of economic growth. Smith, however, was clearly concerned with economic development. The classical school of economic thought, predominantly modeled after Smith, is largely geared toward understanding and explaining economic development. Smith presented a supply driven model of growth, where output was related to labor, land, and capital. Thus, economic growth, which is the increase in output, was related to population growth, investment, land growth, and increases in productivity. According to Smith, society was dependent on the economy’s ability to sustain its increasing workforce. Investment was dependent on the rate of savings. Land growth was dependent on the ability to acquire more land (through conquest) or on the increase in the productivity of existing land. He also believed in the division or specialization of labor as a…arrow_forwardIn 1776, Adam Smith ([1776] 1936) published his treatise, An Inquiry into Nature and Causes of the Wealth of Nations , which was taken by many to be a theory of economic growth. Smith, however, was clearly concerned with economic development. The classical school of economic thought, predominantly modeled after Smith, is largely geared toward understanding and explaining economic development. Smith presented a supply driven model of growth, where output was related to labor, land, and capital. Thus, economic growth, which is the increase in output, was related to populationgrowth, investment, land growth, and increases in productivity. According to Smith, society was dependent on the economy’s ability to sustain its increasing workforce. Investment was dependent on the rate of savings. Land growth was dependent on the ability to acquire more land (through conquest) or on the increase in the productivity of existing land. He also believed in the division or specialization of labor as a…arrow_forward
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