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Question 1:
i) Describe the concept of circular flow of income.ii) Comment on the view that ‘GDP is the best measure to evaluate economic growth and standard of living'.iii) What is economic growth? Identify and comment briefly on the possible contributors to economic growth.
Question 2:
i) Why do people earn different amounts of wages? ii) Define productivity and illustrate carefully how firms can raise the productivity of labour.
Question 3:
Write briefly on any three of the following.
i) Human capital. ii) Wage price spiral. iii) Collective bargaining. iv) Monetary Policy. v) The backward bending supply curve.
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Suppose there is certain social norm. Its enactment into statutory law lowers people's private cost of its enforcement because it creates the possibility that violation of norm wi
Jack and Jill live alone on an island. Their labour supply schedules are identical and given by L = (1 - t)w, where t is the income tax rate and w denotes the wage. Jill's wage i
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