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Thursday, October 4, 2012

IB hk2 BW015


a.     positives-
Increase standards of living
can get out of the poverty cycle
negatives-
High opp. Cost
loss of incentive to work
Does not effect the GDP
Can increase the unemployment rate
b.     Positives-
Will support those poverty
Positive externality of production
Increase in standards of living
Negatives-
High opp. Cost
c.      Postives-
Increase consumption of merit goods
Can support businesses that would otherwise fail
Negatives-
Inefficiency
Opportunity costs




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