5°B Economics Homework

Dear pupils:

The following activities are due by July 15,2009.Send your works to this e mail sandra.castro99qgmail.com

1 Work on the photocopy handed out on thrsday July 2 nd class.

2 Answer the following questions on the recent topics covered in class:

a) What is "crowding out" and why do some economists consider it important (10marks)

b) The government of a less developed countrydecides to reduce the extent of income and wealth inequality.What methods could the government use to achieve its goal? (10 marks)

c)Distinguish between a progressive tax system and a regressive tax system (10 marks)

d) Using a diagram ,explain the concept of the Laffer curve.(10 marks)

3 Read syllabus's point 4.1 , Reasons for trade, pages 384 to 406 from textbook.
Teh ,work on the following
questions:

a) Explain the benefits that can be gained as a result of international trade.(10 marks)

b) Using a diagram,explain the concept of comparative advantage. (10 marks)