Question

• According to economic growth theory, the level of the GDP and the rate of the real GDP growth rate have different economic implications about the economic well-being of a country. If you are given the options, would you rather live in a nation with a high level of GDP and a low growth rate or in a nation with a low level of GDP and a high growth rate? Why?
• Economists consider education as an investment that has both private and social benefits. Education is also the major source of human capital, which is the most important form of capital for the long term economic growth. What is the opportunity cost of investing in human capital? Do you think a country can “overinvest” in human capital? What is the opportunity cost of attending college? Explain.

Answer 1

Economic Theory:

• Economic Theory provides an outlet for research in all areas of economics based on rigorous theoretical reasoning and on topics in mathematics that are supported by the analysis of economic problems. Published articles contribute to the understanding and solution of substantive economic problems.
• Among the topics addressed in the journal are classical and modern equilibrium theory, cooperative and non-cooperative game theory, macroeconomics, social choice and welfare, uncertainty and information, intertemporal economics (including dynamical systems), public economics, international and developmental economics, financial economics, money and banking, and industrial organization.

Economic theory does not automatically generate strong conclusions about the impact of government outlays on economic performance. Indeed, almost every economist would agree that there are circumstances in which lower levels of government spending would enhance economic growth and other circumstances in which higher levels of government spending would be desirable.If government spending is zero, presumably there will be very little economic growth because enforcing contracts, protecting property, and developing an infrastructure would be very difficult if there were no government at all. In other words, some government spending is necessary for the successful operation of the rule of law.

Some addition points about the GDP and the socio- benefits in economy:

GDP:

• The gross domestic product (GDP) is one of the primary indicators used to gauge the health of a country's economy. It represents the total dollar value of all goods and services produced over a specific time period, often referred to as the size of the economy. Usually, GDP is expressed as a comparison to the previous quarter or year. For example, if the Q3 2018 GDP of a country is up 3%, the economy of that country has grown by 3% over the third quarter. While quarterly growth rates are a periodic measure of how the economy is faring, annual GDP figures are often considered the benchmark for the size of the economy.
• In the United States, real GDP increased at an annual rate of 2.6% in the fourth quarter of 2017, according to figures released by the Bureau of Economic Analysis. For all of 2017, GDP grew 2.3%. Current-dollar GDP increased 4.1%, or $762.3 billion, in 2017 to a level of $19,386.8 billion.

The countries with the largest GDP in descending order are

1. The United States
2. , China,
3. Japan,
4. Germany,
5. The United Kingdom,
6. India,
7. France,
8. Italy,
9. Brazil and
10. Canada.

SOCIO-ECONOMIC BENEFITS:

• the purpose of the database, socio-economic benefits refer to benefits offered to a community as a whole through the use of GM crops, and can include long-term impacts on the prevailing economic conditions, on levels of education, on the family unit or on employment levels.
• Currently available GM crops provide real economic benefits in the form of lower production costs, improved yields and simplified crop management. They offer growers peace of mind and can free their time and that of their families so they can choose to spend it on activities other than crop production.
• The database contains 269 papers and supporting references that have been identified as having information on Socio-Economic Benefits Benefits of Biotechnology.

Use this link to find papers in the database relating to Socio-Economic Benefits:

• The experience of the first 20 years of commercialization, 1996 to 2015, has confirmed that the early promise of crop biotechnology has been fulfilled. Biotech crops have delivered substantial agronomic, environmental, economic, health and social benefits to farmers and, increasingly, to society at large.
• The rapid adoption of biotech crops, during the initial 20 years of commercialization, 1996 to 2015, reflects the substantial multiple benefits realized by both large and small farmers in industrial and developing countries, which have grown biotech crops commercially.
• Small farmers in developing countries generally tend to benefit most from biotech crops because insect and disease protected crops provide new and previously unavailable tools for these farmers to protect their crops. Additionally, pest problems are often a greater risk to plants in developing countries and can result in greater yield reductions if left uncontrolled.
• Biotech crops have expanded beyond the big four (corn, soybean, cotton, and canola) to give more choices for many of the world’s consumers. These biotech crops include sugar beet, papaya, squash, eggplant, potatoes that are already in the market, as well as apples which will be in the market in 2017. Potato is the fourth important staple crop in the world and eggplant is the number one vegetable consumed in Asia.
• Non-bruising and non-browning apples and potatoes can contribute to the reduction of food waste. Additionally, research done by public sector institutions include crops such as rice, banana, potato, wheat, chickpea, pigeon pea, mustard and sugarcane at advanced stages of evaluation, and are likely to provide even more diverse offerings to consumers, especially those in developing countries.