Macroeconomics Questions Chapter 12 Problems and Applications ECO 102 Intro to Macroeconomics

1) Most countries, including the United States, import substantial amounts of goods and services from other countries. Yet the chapter says that a nation can enjoy a high standard of living only if it can produce a large quantity of goods and services itself. Can you reconcile these two facts?

7) International data show a positive correlation between income per person and the health of the population.

a) Explain how higher income might cause better health outcomes.
b) Explain how better health outcomes might cause higher income.
c) How might the relative importance of your two hypotheses be relevant for public policy?

8) The great 18th-century economist Adam Smith wrote, “Little else is requisite to carry a state to the highest degree of opulence from the lowest barbarism but peace, easy taxes, and a tolerable administration of justice: all the rest being brought about by the natural course of things.” Explain how each of the three conditions Smith describes would promote economic growth.

Course: ECO 102 Intro to Macroeconomics
School: Community College of Alleghany County



  • 07/04/2017
  • 25
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