A:

Preview: ... , the higher/more competitive the salaries for those positions. Taxes lower the incentives to work, which lowers labor supply. Welfare payments also lower the incentives to work, lowering labor supply. More technology and more capital both make labor more productive, increasing the demand for labor. Labor supply is affected by the average wage and the birth rate of people born within the area or state. Labor demand is affected by the demand for consumer goods and the sudden change in the rate of inflation. The economy and demand for products and/or services affects both labor supply and demand. When the economy is slow going, there is less demand for products and/or services it results in layoffs. A strong economy and high demand for products/services creates jobs, which is labor. <br>I have been on welfare before because it is just my son and I. I do not get help or support from his dad as he does not pay child support very often. Ever since the economy has dropped it is harder than ever to find employment where I can sustain enough money for us. There is a decline in demand for jobs that I am qualified to do. This is the main reason why I am enrolled with this program. Employers now want an employee to have a two year degree at least, because of the changing in the labor market. I have to keep up with the labor market and do my best with what I can.<br><br>Week 7 DQs<br><br>Day 2 - What are the advantages and disadvantages of using the Gross Domestic Product (GDP) as a measure of productivity and economic health? Explain your answers.<br><br>I think as a society, we use GDP because it really the best thing we could come up with. GDP simply tells you the size of the economy measured by output. Change in real GDP is a little better because it captures productivity, but confounds it with population growth. So, it is an imperfect proxy for productivity. GDP is also reflects only average productivity some workers might work more than others and a few extremely productive workers might pull GDP up. Further, change in GDP contains some information about the health of the economy, for example, is it growing or shrinking and how quickly, but it isn't relative to anything. Per capita GDP tells you, on average how much output each person provides to the economy, and is therefore a measure of economic health. This tells you nothing about the distribution, potential, or sustainability of the economy. Change in per capita GDP is a pure measure of productivity because it controls for population size. The GDP can be greatly affected by exports. For example oil producing countries of might large GDP per laborer (which is productivity), but they do not produce that much and their workers are not particular. <br><br>Teacher asks, , in an extreme example, a country which exported 100 per cent of its production and imported nothing would still have a high GDP, but a very poor standard of living. Okay so how do we measure a standard of living?<br><br>I have researched this a lot, and have found out a lot of information about the standard of living and the GDP. What I have learned intreges me. From my understanding, the standard of living tends to increase when GDP per capita increases. This makes GDP a substitute for standard of living, rather tha ...

The full tutorial is about 2776 words long plus attachments.

Attachments:
DQs.docx (24K)