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Advantages of Increasing a Country's Labor Force

Question

Analyse the advantages of an increase in a country’s labour force.

Category:

Labor Market and Income Distribution

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Preview Answer

I. 🍃Introduction
- Definition of labour force and its importance in economics
- Thesis statement: A larger labour force can have significant positive impacts on a country's economy.

II. Increased labour force leads to higher potential output
- Explanation of how a larger labour force can increase potential output
- Importance of employment of the increased labour force

III. Higher output leads to economic growth and higher GDP
- Explanation of how higher output leads to economic growth and higher GDP
- Importance of economic growth for a country's development

IV. Increased tax revenue enables government expenditure on education and health
- Explanation of how increased tax revenue can enable government expenditure on education and health
- Importance of education and health for a country's development

V. New workers bring new skills and increase labour productivity
- Explanation of how new workers can bring new skills and increase labour productivity
- Importance of labour productivity for a country's economic competitiveness

VI. Increased labour supply may attract MNCs
- Explanation of how increased labour supply may attract MNCs
- Importance of MNCs for a country's economic development

VII. Higher labour supply may reduce wages and lower prices
- Explanation of how higher labour supply may reduce wages and lower prices
- Importance of lower prices for a country's consumers

VIII. Increased output results in increased exports and improved balance of payments
- Explanation of how increased output can lead to increased exports and improved balance of payments
- Importance of exports for a country's economic growth

IX. 👉Conclusion
- Summary of the positive impacts of a larger labour force on a country's economy
- Call to action for policies that promote a larger labour force.

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