Question

Purpose: To develop the skill of making and assessing economic arguments and to deepen understanding of the economic concepts introduced in Chapter 8. Context: Normative economic statements are economic policy goals and values. There are two types of economic goals: efficiency and equity. We will begin with efficiency. Efficiency goals are based on maximizing the value of resources by producing the maximum amount of the most highly valued goods (allocative) and producing them at least cost (productive). [See page 57 for a discussion of these concepts). A third consideration that is important in macroeconomics is dynamic efficiency, which considers the trade-off between current and future goods (See pages 14-15), or, to put it differently, the achievement of an optimal amount of economic growth- a key macroeconomic policy objective. Consider these normative statements: 1: The U.S. government should enact polices that encourage faster long run economic growth. 2: The U.S. government should enact policies that reduce economic growth. 3: The US government should enact polices that encourage sustainable and equitable economic growth. Task: Make one substantive but succinct post (60-120 words) to the Activity 4: Normative Economics (Efficiency) Forum. For your post:

Answer 1

Ans. 3. The US Government should enact policies that encourage sustainable and equitable economic growth.

The government must incorporate efficiency alaong with equity and sustainability. Having good amount of resources and technology the country must extract the maximum out of it. Also the allocation of the resources must be done effectively tk enhance all the capable sectors. Alkng with both these measures, sustainability must be kept in mind to preserve the resources for future generations as well. Incorporating all these would surely increase US's economic growth and development simultaneously.