Question: 1. Here are some facts concerning a less-developed country:
a. Describe how GNP changed between 1970 and 1975 and between 1975 and 1980.
b. What happened to RGNP over these periods? Did it increase, decrease, or stay the same? Explain.
c. What happened to per capita RGNP over these periods? Did it increase, decrease, or stay the same? Explain.
d. Were the residents of this country better off in 1980 than in 1970? Explain.
2. Where do you stand on the value-added tax? What are the main arguments in favor of a VAT? What are the counterarguments? Evaluate both sides and state your position.