China's current rate of GDP growth is quite rapid. Its current growth rate is probably three times that of the United States. However, the levels of pollution are much higher in China
Would you consider China to be better off than the United States given this information? Why or why not?
China is not better off because of higher rates of growth of GDP. GDP is not a perfect measure of well-being. GDP is not adjusted for pollution or other negative effects of production. Certainly the rapid growth of GDP raises the standards of living of many in China. However, this comes at a cost of dirty air and water. According to the World Health Organization, seven of the ten most polluted cities in the world are in China. This pollution can result in negative health effects. The improvement in standards of living affect well-being in a positive manner, but the increased pollution has a negative effect on well-being. In addition, GDP per capita may be a better measure of standard of living rather than growth in GDP.
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Keynes argued that
I. Capitalism did not always lead to full employment. II. Nominal prices were more important than relative prices. A) I only B) II only C) Both I and II D) Neither I nor II
If private savings equals $1.2 billion and private investment equals $1.5 billion, then there is a
A) current account balance. B) government sector deficit. C) private sector deficit. D) private sector surplus. E) government sector surplus.