Economics Drill Solutions of UN Exam 2011 SMA Paket 5

Fiscal policy is associated with the government's stand regarding public revenue, public expenditure and public debt. It strives to reduce inequalities in income and wealth and develop a socially optimum pattern of investment. The investment pattern varies from country to country and it depends on the core economic wealth available in the form of resources and feasibility of such investment. Say, developing countries like India has its concentration of activity centered on telecommunication, power generation through alternate fuel resources and information technology.
Taxation brings economic stability. During inflation, an increase in tax rates will reduce the purchasing power of people thereby reducing the prices in the economy. A reduction in tax rates during depression will stimulate economic investment and consumption.
Can mere introduction of generous subsidies and changes in industrial policies bring desired growth in the economy? A nation should aim to increase its productive potential by providing necessary ingredients of growth in the form of solid infrastructure.
There is no properly laid template for the unending problems of unemployment and inflation. Economists of each nation have to carefully study the previous patterns of business cycles and at the same time find ways to improve the living standards of people by increasing the per capita income, thus increasing the national income.
Back when the internet was new, online selling sites were used exclusively for old and unwanted things that needed a place to go. However, over the years sites like eBay have evolved into a more complex network, full of opportunities. If you were to go onto eBay during the holiday season, you would find a ton of brand new items up for sale priced higher than retail. Are the people bidding on the items crazy? No these sellers know how to use economics to their advantage.











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