Economic Growth and Equity in the Distribution of Income

Chapter 11: Macroeconomic Objectives II: Economic Growth and Equity in the Distribution of Income

1: Explain the potential effects on the economic growth rate from substantial increase in the number of skilled people of working age entering a country.
2: Discuss the view that, apart from indicating economic growth rates over time, national income statistics are of little use.
3: Evaluate the view that economic growth is best achieved through improvements in technology.
4: Evaluate the view that increased investment is the most important factor in achieving a faster rate of economic growth.
5: Explain the impact of automatic stabilizers on an economy.
6: Discuss the view that economic growth always leads to a more equal distribution of income and reduction in unemployment.
7: Using an appropriate diagram, explain how a recession might lead to more poverty.
8: Evaluate the view that attempts to achieve greater equity in distribution of income will reduce economic efficiency.
9: Explain two factors which might cause economic growth.
10: Evaluate the view that the benefits of economic growth will always outweigh the costs.
11: Explain why the market system may not result in an equitable distribution of income.
12: Evaluate government policies to promote equity in terms of their effects on efficiency in the allocation resources.
13: Explain how labour market reforms may be used to promote economic growth. Explain how a government could bring about a more equal distribution of income.
14: Evaluate the effectiveness of government policies designed to reduce inequalities in income.
15: Explain two policies a government might use to redistribute income.
16: “Measures to promote greater income equality should be a key feature of government economic policy.” Evaluate this proposition.