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What happens when the government raises taxes and uses revenue to engage in spending?

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Module 4 – Case

INTERNATIONAL TRADE AND ECONOMIC GROWTH

Case Assignment

Submit a 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers. Show work for all calculations.

  1. (a) If real GDP was $13.1 trillion in 2013 and $13.3 in 2014, what is the growth rate? (b) How many years would it take for GDP (gross domestic product) to double (using your answer from part a)?
  2. What are the sources of human capital? What are sources of labor productivity? Discuss some specific examples.
  3. What is the law of diminishing returns? Give an example of what the law of diminishing returns implies.
  4. What happens when the government raises taxes and uses revenue to engage in spending?

Assignment Expectations

Use concepts from the modular background readings as well as any good quality resources you can find. Be sure to cite all sources within the text and provide a reference list at the end of the paper.

Length: 4–5 pages double-spaced and typed.

The following items will be assessed in particular:

  • Your ability to understand international trade policy.
  • Some in-text references to the modular background material (APA recommended).
  • The essay should address each element of the assignment. Remember to support your answers with solid references including the Case readings.

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