Econimic Research :: essays papers

Econimic Research1. During the 1960s, The Soviet economy may have been growing at a rate of growth much faster that the West, but the Soviet GDP would have provided a poor statistic for determining the welfare of the soviet masses for several reasons. The first reason that GDP would be obsolete for determining the welfare of the nation is that during the 1960s, the Soviet Union was in feature Communist, so the people were only allotted whatever property or privilege the government would allow, so there was no free market on which goods could be bought and interchange by anyone. It is also of interest to know that during the 1960s and early 70s, the USSR did lead the world in a few industries(forestry, mining), but with such a larger get the picture force than the US, the GDP per capita would, all other things being equal (ceteris paribus), show that growth could have occurred solely due to larger population. 2. If the Instructor were to choose a fixed rate, he would try for t hat inflation would attach, so that he would be paying back money that has a lower purchasing power than the maestro principal amount the instructor would have financed, (just as in the scenario He had given about his Father in Maryland, and his mortgage held with the sinister bank who detests the fact that your Father has a fixed rate mortgage and pays around $300 a month). If our Instructor chose the adjustable rate, the instructor would think that inflation would decrease, and would also hope that interest rate would decrease as well. Since Alan Greenspan is somewhat unpredictable, I would advise the instructor to refinance for a fixed rate once interest rates take a turn for the better, so that it would be locked in at the lowest going rate available. 3. Changes in Production by Black Death(Bubonic Plague) in Medieval Times Land LandLabor(pre-Plague) Labor(post-Plague) B. Wages for the workers would increase due to the decrease in labor pools caused by death. C . The surviving workers benefited from this disaster due to the increase in wages available due to the untimely death of so many. The wealthy landowners would have been overall harmed by the loss in manual labor, which caused little productivity and yet higher wages could be demanded by the surviving workers out of necessity for needed labor, while the rental(capital) rate of the land decreased harmonise to the isoquant.