Define subsistence level. What happens if the income in an economy exceeds the subsistence level in Malthus cycle?
What will be an ideal response?
The subsistence level is the minimum level of income per person that is generally necessary for the individual to obtain enough calories, clothing, and shelter to survive.
If the income in an economy exceeds the subsistence level, the fertility in the economy increases, which in turn increases the size of population of the economy.
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Transfer payments refer to payments from the government to ________
A) other government agencies B) distribute state taxes collected by the government to individual states C) reimburse property taxes paid by states for government property leases D) certain individuals or groups
Explain an additional disadvantage for a country undergoing dollarization compared to a currency board or other exchange-rate targeting regimes
What will be an ideal response?