Economics Questions and Answers

The factor that may not promote industrial development is granting old firms tax exemptions.

Tax exemptions are a form of government subsidy that can be given to firms in order to promote economic development. However, they can also have the unintended consequence of discouraging innovation and efficiency.

This is because tax exemptions can make it easier for old firms to stay in business, even if they are not competitive. This can prevent new firms from entering the market, which can stifle innovation and economic growth.

The price level and the value of money are inversely related. The price level is the average price of goods and services in an economy. The value of money is the amount of goods and services that can be purchased with a unit of money.

When the price level increases, the value of money decreases. This is because the same amount of money can buy fewer goods and services. Conversely, when the price level decreases, the value of money increases. This is because the same amount of money can buy more goods and services.

The rate of growth of population is generally calculated using the formula: birth rate minus death rate plus net migration. This formula takes into account the components that contribute to changes in population size over a specific period of time.

GNP = NNP + Depreciation Allowance

In this case, the NNP is $50m and the depreciation allowance is $10m. Therefore, the GNP is:

GNP = $50m + $10m = $60m

The Malthusian theory of population is best illustrated when population increases much faster than food supply. This is because the Malthusian theory argues that population growth is exponential, while food supply growth is linear. This means that the population will eventually outgrow the food supply, leading to famine, disease, and war