BCO124 – Macroeconomics (3CH/4ECTS) Task 2.3: Written Assessment (Coursework Sample)

MICROECONOMICS TASK 2.3 by Student’s First Name, Middle Initial(s), Last Name Course Name and Number Instructor’s Name and Title Institution Affiliation City and State where it is located Date Submitted MACROECONOMICS TASK 2.3 Problem 1: Economic Growth Part a The wealthiest country is North Country because it has the highest Real GDP per capita (15.468€). Part b The East Country is the most advancing country. It is because it has the most remarkable growth rate of 3.12%. Part c The East country would presumably profit the most from an increase in capital investment because it has the highest growth rate and can optimize the capital investment. Part d The county will not continue to reap the same benefits indefinitely since there is a threshold at which further expansion is impossible, even with increased capital investment. Part e The annual rate of growth is calculated below: North Country in the coming year = [final - initial] initial = [15.918-15.468]15.468 = 0.03 percent. Problem 2: Economic Growth The world economic growth has accelerated many livelihoods. Even so, advanced economies have overlooked that gross domestic product (GDP), the benchmark criterion of growth in the economy, merely quantifies the magnitude of a state's economy but does not portray a country's well-being. It is a poor indicator of a society's well-being because it excludes the value of almost all goods produced outside the market, does not reflect income distribution, and excludes the level of health, leisure, quality of the environment, and technology influx. The GDP excludes the value of almost all goods produces outside the market. The burgeoning service sector in the UK is progressively influencing today's societies, from buying groceries on Amazon to taxi tickets on Uber. As the value of interaction overtakes the value of constant output, the premise of GDP is rapidly becoming outmoded. We live in an age where the internet provides unlimited amounts of interactive media, the value of which cannot be assessed by GDP. Furthermore, it does not factor in household or charitable work, although these tasks substantially benefit social welfare by augmenting the free market and thus improving the quality of life. GDP, on the contrary, exempts black market transactions and other illicit activities, which can considerably adversely affect overall social well-being. For instance, 'home production' childcare is incredibly beneficial to early childhood development, and charity work improves the lives of millions of people in the UK. GDP is focused on domestic industry, but some of it is operated by foreign nationals but also the UK also owns foreign output. UK's well-being is more strongly linked to the earnings they receive directly from their output, notwithstanding where it occurs, than to output within the United Kingdom alone. The GDP says nothing about income distribution. For example, it cannot tell the difference between an inequitable versus an egalitarian society if their fiscal sizes are equivalent. In the UK, the nominal GDP is among the top in the world, but the Gini coefficient, which measures income distribution, indicates an average performance. The UK has among the highest levels of income inequality in the European Union, as shown (Francis-Devine, 2021). As income disparity leads to increased socioeconomic disenchantment and polarization, legislators must consider these concerns when gauging development. GDP as a measure of well-being excludes the level of health, leisure, quality of the environment, and technology influx in the UK. According to (Giampieri et al., 2019), GDP, for instance, incorporates the value of automobiles but still does not account for the carbon output they keep producing. Problem 3: Unemployment Part 1 Population above or equal to 16 years = Labor force + Out of labor force Using information from the table provided, the labor force is calculated by subtracting the out of labor force from the population 16 years old and above.  Thus, the labor force is 33830.7 - 14308.2, which is 19522.5 Part 2 Employed + unemployed = Labor force Since the number of employed people and the labor force is known, the number of unemployed people is calculated by subtracting the employed people from the labor force.  Thus, the unemployed people are 19522.5 – 14702.0, which is 4820.5 Part 3 The force participation rate is calculated using the formula; (Labor force/Population above or equal to 16 years) *100 Thus, it is 19522.5/33830.7 * 100 The labor force participation rate is 57.706% Part 4 The unemployment rate is calculated using the formula; (Unemployed/Labor force) *100. Thus, it is 4820.5/19522.5 * 100 The unemployment rate is 24.692% Problem 4: Saving and Investments Part a The value of savings and investments is calculated using the formula; Y - (C+G) Thus, it is 6000 – (4000+1200), which is €800 * Part b The value of private savings is calculated using...