Principles of Economics- Mankiw (5th) 533

Principles of Economics- Mankiw (5th) 533 - CHAPTER 24...

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CHAPTER 24 PRODUCTION AND GROWTH 551 3. U.S. income per person today is roughly eight times what it was a century ago. Many other countries have also experienced significant growth over that period. What are some specific ways in which your standard of living differs from that of your great-grandparents? 4. The chapter discusses how employment has declined relative to output in the farm sector. Can you think of another sector of the economy where the same phenomenon has occurred more recently? Would you consider the change in employment in this sector to represent a success or a failure from the standpoint of society as a whole? 5. Suppose that society decided to reduce consumption and increase investment. a. How would this change affect economic growth? b. What groups in society would benefit from this change? What groups might be hurt? 6. Societies choose what share of their resources to devote to consumption and what share to devote to investment. Some of these decisions involve private spending;
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