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)

a) In terms of equity this would make sense every person has the right to the best healthcare. Problem: ”Efficiency ”

b) 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 unemploymentQuestion: If people save money who will then consume these products, “investments”?Society would not profit from this in long term interval.

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 employmentLess inflation more unemployment

people would have to work more in order to keep the Economy on the same level of efficiency

Question 17:Example:GreecePrinciple 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 economyPeople face unemployment, increasing tax etc.