Read Real World Micro 1.4 (“Are We Better Off”) and 1.5, “Sharing the Wealth of

Q: Read Real World Micro 1.4 (“Are We Better Off”) and 1.5, “Sharing the Wealth of

About Micro Economics: Question 1. Living in a very poor country than living in very rich country Annual Income A$ Tax Percentage Below 20,000 0 20,000 – 30,000 10 % 30,000 – 40,000 20 % 40,000 – 50,000 25 % 50,000 – 100,000 36 % Above 100,000 49 % Annual Income A$ Tax Percentage Below 20,000 0 20,000 – 30,000 10 % 30,000 – 40,000 20 % 40,000 – 50,000 25 % 50,000 – 100,000 36 % Above 100,000 49 %

ID: 3664597 • Letter: R

Question

Read Real World Micro 1.4 (“Are We Better Off”) and 1.5, “Sharing the Wealth of the Commons” and Microeconomics, pages 86-87: “Current Controversies: GDP and its Critics,”

Why do so many economists assume that higher GDP improves the human lot?

1. Would your answer be the same if you lived in a very poor country than in a very rich country?

2. Would your answer be the same if economic growth was evenly distributed across the population?

3. Would your answer be the same if regulations fully protected the common environment from pollution?

Explanation / Answer

About Micro Economics:

Question 1. Living in a very poor country than living in very rich country

Annual Income A$

Tax Percentage

Below 20,000

20,000 – 30,000

10 %

30,000 – 40,000

20 %

40,000 – 50,000

25 %

50,000 – 100,000

36 %

Above 100,000

49 %