Podcast
Questions and Answers
What does the Cobb-Douglas production function help analyze in the context of national income?
What does the Cobb-Douglas production function help analyze in the context of national income?
If the share of income going to labour is represented by 'v', which of the following is true?
If the share of income going to labour is represented by 'v', which of the following is true?
What is the estimated value of 'v' in the UK?
What is the estimated value of 'v' in the UK?
Which factor is NOT mentioned as influencing the income share?
Which factor is NOT mentioned as influencing the income share?
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Which formula represents the share of income going to labour?
Which formula represents the share of income going to labour?
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As per the information provided, how does the value of 'v' affect the income shares over time?
As per the information provided, how does the value of 'v' affect the income shares over time?
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What is the primary reason attributed to the US running a large trade deficit in the long run?
What is the primary reason attributed to the US running a large trade deficit in the long run?
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How does an increase in military spending affect interest rates?
How does an increase in military spending affect interest rates?
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What does MPN stand for in the context of the supply and demand aspects of national income?
What does MPN stand for in the context of the supply and demand aspects of national income?
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What impact do trade restrictions have on the demand for imports in a small open economy?
What impact do trade restrictions have on the demand for imports in a small open economy?
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What is represented by the constant 'A' in the Cobb-Douglas production function?
What is represented by the constant 'A' in the Cobb-Douglas production function?
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What remains unchanged in the loanable funds market when protectionist policies are implemented?
What remains unchanged in the loanable funds market when protectionist policies are implemented?
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What occurs to the real exchange rate when foreign goods become more expensive due to a decrease in demand for imports?
What occurs to the real exchange rate when foreign goods become more expensive due to a decrease in demand for imports?
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Which of the following factors is said to not correct the US trade deficit in the long run?
Which of the following factors is said to not correct the US trade deficit in the long run?
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What happens to the equilibrium in the loanable funds market when savings do not equal investment?
What happens to the equilibrium in the loanable funds market when savings do not equal investment?
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What is the assumption regarding the export position when countries do not retaliate against trade restrictions?
What is the assumption regarding the export position when countries do not retaliate against trade restrictions?
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What is a primary factor that affects how long a country can sustain a trade deficit?
What is a primary factor that affects how long a country can sustain a trade deficit?
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Which factor does NOT contribute to the low capital inflow to developing countries despite low capital-to-labor ratios?
Which factor does NOT contribute to the low capital inflow to developing countries despite low capital-to-labor ratios?
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What is the significance of the US dollar in global finance?
What is the significance of the US dollar in global finance?
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Which policy approach is NOT suggested for enhancing long-term output?
Which policy approach is NOT suggested for enhancing long-term output?
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Which of the following best explains the relationship between capital flows and production conditions?
Which of the following best explains the relationship between capital flows and production conditions?
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What impact do trade restrictions typically have on output in the long run?
What impact do trade restrictions typically have on output in the long run?
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What is expected to happen to the US trade deficit in the long run?
What is expected to happen to the US trade deficit in the long run?
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Which of the following is NOT a suggested policy for improving economic productivity?
Which of the following is NOT a suggested policy for improving economic productivity?
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What happens to national saving when governments increase their spending?
What happens to national saving when governments increase their spending?
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Which of the following has contributed to the rise in inequality as measured by the Gini coefficient in the US since World War II?
Which of the following has contributed to the rise in inequality as measured by the Gini coefficient in the US since World War II?
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What primarily drives the long-term trend of national saving in an economy?
What primarily drives the long-term trend of national saving in an economy?
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If government expenditure increases while demand for loanable funds remains the same, what will likely happen to interest rates?
If government expenditure increases while demand for loanable funds remains the same, what will likely happen to interest rates?
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Which factor is NOT mentioned as an explanation for the increase in inequality in the US?
Which factor is NOT mentioned as an explanation for the increase in inequality in the US?
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What has historically been an important driver of interest rates related to government spending?
What has historically been an important driver of interest rates related to government spending?
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In relation to the role of government in the economy, what are the short-term variations in national saving mainly dependent on?
In relation to the role of government in the economy, what are the short-term variations in national saving mainly dependent on?
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The trend of the Gini coefficient over the last few decades signifies what change in society?
The trend of the Gini coefficient over the last few decades signifies what change in society?
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Study Notes
Income Share Trends
- The share of labor income has a relatively flat, downward trend over time.
- Factors influencing income share:
- Technological change
- Firm/trade union bargaining power
- Tax systems
- Short-term changes:
- Short-run economic fluctuations (e.g., recessions) affect output and productivity, influencing income distribution.
Income Distribution
- Beyond labor and capital shares, income inequality (measured by the Gini coefficient) in the U.S. has risen since World War II.
- Possible explanations include:
- Rising capital share
- Expanding human capital/technology
- Globalization
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Description
Explore the nuances of income share trends and income distribution in this insightful quiz. Delve into factors like technological change, economic fluctuations, and income inequality as measured by the Gini coefficient. Understand the complexities influencing labor and capital shares over time.
