1 / 2

Economics and Society (Homework, 16 February) Question 13:

Economics and Society (Homework, 16 February) Question 13: Efficiency: To produce the maximum of desired goods (Allocation target) Equity: To distribute goods as equally as possible, cake principle (Distribution target)

ceana
Download Presentation

Economics and Society (Homework, 16 February) Question 13:

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economics and Society (Homework, 16 February) Question 13: Efficiency: To produce the maximum of desired goods (Allocation target) Equity: To distribute goods as equally as possible, cake principle (Distribution target) In terms of equity this would make sense every person has the right to the best healthcare. Problem: ”Efficiency ” In terms of equity this measurement is good. Problem: Some people would not have the interest to find a new job. Not very efficient for the Economy. Question 14: Cave Principle: People strive for the better. In terms of development (electronics etc.) life is more advanced. Globalisation: Everything is linked, world is connected. This phenomena is very “young” Question 15: Companies could make investments and improve their productivity. Decrease unemployment Question: If people save money who will then consume these products, “investments”? Society would not profit from this in long term interval.

  2. Economics and Society • (Homework, 16 February) • Question 16: • One would need to know how much capital exists in an economy. In this case Banks should decrease their “production” of money. • How unemployment and inflation are linked: • According to the Philips curve: • More inflation more employment • Less inflation more unemployment • people would have to work more in order to keep the Economy on the same level of efficiency • Question 17: • Example:Greece • Principle 8: The standard of living depends on a country’s production. • Greece’s amount of debt is too high not a very efficient condition for an economy • People face unemployment, increasing tax etc.

More Related