Question

Pick any 2 questions and answer it (answer should be half page long per question):

1. The Information Revolution, an economic restructuring comparable to the Agricultural Revolution and the Industrial Revolution, has brought about new questions of social interest. Elaborate.

2. Think about the trends in what and how goods and services are produced in the U.S. and global economies. Do you think that at some future time, there will be no jobs in the United States and all the jobs will be in developing economies?

3. Compare the scale of agricultural production in the advanced and developing economies.

4. China is currently the world’s second largest economy. It is predicted to surpass the U.S. to become the biggest economy in the not-too-distant future. How does this development influence the strategic balance and the position of the United States?

5. In 1990, Congress imposed a luxury tax on yachts costing more than $100,000, along with similar taxes on a handful of other luxury goods. It was estimated that the new taxes would yield more than $31 million in revenue in 1991. However, the tax actually generated a bit more than half the amount, $16.6 million. Several years later, the Joint Economic Committee estimated that the tax on yachts had led to a loss of 7,600 jobs in the U.U. boating industry. Taking account of lost income taxes and increased unemployment benefits, the U.S. government actually came out $7.6 million behind in fiscal 1991 as a result of its luxury taxes- almost $ 39 million worse than the initial projection. Congress repealed the luxury tax on yachts in 1993. What went wrong?

Answer 1

3. The scale of agriculture production is very much higher in developing countries as compared to developed/advanced countries. A large number of people in developing countries are engaged in agriculture. A large contribution to GDP in developing countries comes from primary sector. On the other hand, developed countries receive large proportion of share in GDP from secondary and tertiary sector. It is thereby, concluded that large proportion of agriculture produce is contributed by developing countries.

4. The world’s economy is changing. China is probably going to surpass US and will become the biggest economy in near future. It is because of low cost of production in China. This low production cost and cheap labour are negatively impacting the export market of US. US will lose its global economic position. According to the statistics available, China was US’s largest creditor in 2018. The trade balance of US with China will ne negative. It is thereby, concluded that China will adversely affect the US economy resulting in decrease in exports and thus negatively impacting US GDP rate.