Current Economic Issues Final Exam Answer the following 10 questions. Answer in complete sentences. Grades will be determined by the overall quality and accuracy of your responses. 1.) Briefly...

1.) Briefly describe how Trump’s proposals in education reform may impact the economy in the
long run. Offer an optimistic and pessimistic perspective.
Education policies followed by Republicans have been focusing on expanding choice given to
students, local communities and families. On second March 2017 President Donald Trump has
announced his devastating budget for the 2018 fiscal year. Budget proposed to cut expenditure
on teacher training. This would dismantle the public school system. Cost of teacher training in
private colleges will increase and this will reduce the availability of qualified teachers in the long
un. Budget proposed to transfer public fund to private school vouchers. This will encourage
more private schools and colleges come. This will increase quality primary, secondary, and
college education. Student and their parents will various options for study and they choose best
among them. Budget proposed cut $9 billion in public funding of education. This will have
devastating effect on public school system in the future. Though the number of private schools
and college will increase in the future but the number community schools and colleges will fall.
Cost of education will go up in the long run this will this will throw some people out of
education system.
2. GDP is the standard measurement for economic growth, list criticisms of as to why GDP may
not be the best way to analyze economic growth.
GDP is one of the widely used indexes to measure the strength of an economy and its well being.
It is not a perfect measure of economic well-being. GDP fails to include some new production
that clearly adds to the level of well being of people, while at the same time counting some
production as income that does not contribute to human welfare. One of the significant omissions
when calculating GDP is an estimate for the value of home production. The values of labour
service of women who perform variety of unpaid task are not included in GDP. The value of this
home production is excluded because such goods and services are not valued in the market.
Without doubt these productive activities contribute to the social well being. Some farmers
produce agricultural product for the self use. Values of these items are omitted when measuring
GDP. GDP never makes any distinction between beneficial and harmful economic activity.
Instead it can only add all activities which may be harmful or beneficial to the society. Sale of
cigarette or liquor to children, industries which manufacture high tech machines but pollutes
environment and deplete natural resources, destruction of forest land for augmenting agriculture
output, all generate new economic activity and all count as additions to GDP. Most of the
economic activities pollute environment, contaminate water resources, and deplete precious
esources like oil and natural gases. Still these activities accelerate GDP growth even as it
destroys the essential resource on which the very sustainability of those growths depends. GDP
as measure never gives an idea on how these incomes is divided among the society. Growth in
the incomes which accrue only to richest of the rich of the country can
ing an impressive
economic growth even as a majority of people live in poverty. GDP is based on market
transactions, which means GDP is a...