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Domestic Employment, Standard of Living, Mark to Market

I need an understanding of these statements:

1. Is it true during times of high unemployment trade restrictions should be imposed to protect domestic employment?
2. Is it true the only way the standard of living can increase is to increase the quantity of labor and/or capital?
3. Is it true the "mark to market rule" has had little impact on banks and insurance companies over the last few years?
4. Is it false an increase in corporate income taxes increases the investment in physical capital for any given interest rate?

Solution Preview

1.Is it true during times of high unemployment trade restrictions should be imposed to protect domestic employment? -- TRUE. This would decrease the amount of imports, which would spur domestic production and help to decrease unemployment.

2. Is it true the only way the standard of living can increase is to increase the quantity of labor and/or capital? -- TRUE. This usually happens through capital because so many different factors are included in the term "capital." By increasing capital, we're increasing the level of innovation, production, output, and other elements that directly raise the standard of living due ...

Solution Summary

This solution explains whether each statement listed is true or false and provides a thorough explanation.

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