poor infrastructure Flashcards
What is the likely impact of poor infrastructure for Indian firms?
A decrease in productivity
What is the likely impact of higher costs caused by poor infrastructure?
DHigher prices will decrease competitiveness and reduce profit
Which of the following shows a likely impact of a decrease in profit made by Indian firms?
CThe Indian government receives less corporation tax revenue
What is the impact of poor infrastructure on productivity?
Poor infrastructure will make firms less productive as it takes workers longer to get everything done.
Complete the following statement: Poor infrastructure makes firms less and this will cause an in costs. This will force firms to increase their which will make them competitive and so profit will . This will decrease tax revenue for the government meaning spending on development will .
Complete the following statement: Poor infrastructure makes firms less productive and this will cause an increase in costs. This will force firms to increase their prices which will make them less competitive and so profit will decrease . This will decrease corporation tax revenue for the government meaning spending on development will decrease or down .
Poor infrastructure will make firms less productive as it takes workers longer to get everything done.This increases costs. Higher costs force firms to increase prices which makes them less competitive meaning people demand less of their products. This decreases their profits. As a result, the government will receive less corporation tax revenue meaning it has less money to spend on development. The chain of reasoning is:
Poor infrastructure
Complete the following statement: FDI stands for which is an investment made by a firm in one country into a firm in another in order to gain over it.
FDI stands for Foreign Direct Investment which is an investment made by a firm in one country into a firm in another country in order to gain control over it.
How will an increase in productivity affect economic growth and development?
CAn increase in short-run aggregate supply, increasing economic growth
AAn increase in long-run aggregate supply, increasing economic growth
Which of the following shows the impact of low productivity?
Low productivity causes a left shift in LRAS meaning the economy has a lower productive capacity. This will limit real GDP and therefore limit economic growth. The chain of reasoning is as follows: Low human capital
Low productivity
Keeps LRAS to the left
Limits real GDP
Limits economic development
Which of the following is likely to occur if incomes are low in Madagascar?
Low incomes means that the government will unable to collect much income tax revenue which means that it has less money available to invest in development.
Low productivity will shift the
Low productivity will shift the long-run aggregate supply curve to the left which will limit economic growth.
Low human capital
Low productivity
Keeps LRAS to the left
Limits real GDP
Limits economic development
hen people receive a poor education, they will leave school with low human capital
When people receive a poor education, they will leave school with low human capital which means that they do not have the knowledge or skills to make them productive workers. This will shift the long-run aggregate supply curve to the left and limit real GDP or Gross Domestic Product and therefore limit economic growth .
Low human capital
What is the impact of an improvement in human capital?
When people receive a better education, they leave school with higher human capital which means that they have the knowledge and skills to make them more productive workers.
Which of the combinations above shows the likely effect of higher productivity?
An increase in productivity will shift the long-run aggregate supply curve to the right meaning real GDP and economic growth will increase. Higher productivity also means an increase in workers’ incomes. As a result, workers will pay more income tax and so the government will receive more revenue. This gives them more money to spend on development.
What is a possible short run impact of children leaving the vanilla farms in order to study at school?
Building schools in remote areas can mean that children move from working on the farms to being in school. This means that they are no longer able to help their families on the farm which means they will produce less. This will then decrease their incomes.
A low standard of education means that students will not acquire the
A low standard of education means that students will not acquire the knowledge or skills they need. In other words, they will have low human capital meaning there will not be a significant increase in worker productivity.
Lower productivity will shift the long-run aggregate supply curve to the left and decrease real GDP and therefore decrease economic growth.
Lower productivity also means that workers’ incomes will decrease. This means that they will pay less income tax and so the government will receive less revenue. This gives them less money to spend on development.
What does it mean if a country has low levels of human capital?
Low levels of human capital means that workers lack the skills, knowledge and assets necessary to become productive workers.
