ECO 2117 Lecture Notes - Lecture 14: The Need, Human Capital, Opportunity Cost
20 Nov 2017
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Document Summary
Communist regimes are ine cient because people don"t have a desire to work. Trying to prevent extreme inequality, a certain degree of inequality is good. In order to become a rich country, there needs to be some level of inequality. At the top of the u, growth becomes self-sustaining and the income can start to be redistributed to reduce the inequality. Chapter 5 is very important for the exam. Women are usually marginalized in developing countries so even though they might take care of the family, they"re poor. People in rural areas are usually more poor than those in urban areas. People in rural areas think they if they move to urban areas, they will be able to make more money: this leads to favelas in urban areas. Indigenous people are marginalized in all countries; developed and developing. Poor workers have lower opportunity cost of time (so the economy loses little output when they work in the program)
