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BROSE0407 BROSE0407
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6 years ago
Taiwan and Jamaica are both islands that have pursued export-oriented development strategies, but Jamaica has experienced increases in unemployment and poverty, while Taiwan has experienced decreases. How might you explain this?
 
  What will be an ideal response?


Question 2 - How is tax incidence important in tax policy in developing countries?
 
  What will be an ideal response?


Question 3 - Overall limits on an economy's ability to use capital are its
 
  a. absorptive capacity
  b. budget deficit
  c. capital flight
  d. disequilibrium interest rate
  e. all of the above


Question 4 - How could the removal of labor market distortions increase employment even if the elasticity of factor substitution is very low?
 
  What will be an ideal response?
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#1
6 years ago
[ 1 ]  The type of exports, commodity or manufactured, may matter. You may wish to use other countries as illustrations, depending on the examples you use in lecture.

[ 2 ]  Incidence is the extent to which the burden of a tax is born by the activity taxed. To the extent that substitution is possible, an activity will be abandoned when taxed, and revenue will not be collected. The answer should provide examples of this.

[ 3 ]  A

[ 4 ]  Reduce speculative rural-urban migration based on expected wages as in the Todaro model.
BROSE0407 Author
wrote...
#2
6 years ago
Excellent response
wrote...
#3
6 years ago
Thank you
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