He has recently become aware of an economic principle that suggests that as a nation's
productivity rises, its income will rise and therefore its standard of living will also rise. You have
just been appointed as the economic advisor for Lisavia. Discuss three economic policies you
might advise the President to pursue in order for his country to achieve this increased standard of
living.
Develop a response that includes examples and evidence to support your ideas, and which clearly
communicates the required message to your audience. Organize your response in a clear and
logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-
As the economic advisor of Lisavia, it is important for me to begin by addressing the definition
manufactured by individual labor units. One of the principles of economics states that a
country’s standard of living is dependent on the country’s potential to produce goods and
services, this motive deduces the fact that increasing productivity will therefore enhance a
country’s standard of living. In order for the President to attain the objective of strengthening our
country’s standard of living, he should focus on education, free trade, and enforcing property
In order to achieve this increased standard of living which includes wealth, material goods,
employment opportunities, housing, labor, GDP, inflation rates, etc.… the quality and
obtainability of education becomes a crucial factor. Education refers to the process of giving or
receiving (in this case) systematic instruction. It has been proven that education raises a person’s
wage by approximately 10 percent. An effective way to increase our country’s standard of living
is by providing facilities to promote higher education and to have a variety of schools available
in all areas. For example, if a business man would like to widen his knowledge on how to
communicate with other businesses, maybe an opportunity to attend a workshop that will address
effective ways to communicate and build relations will help his business grow and his
brainstorm ideas and effective ways of producing goods and services. Overall, investing in
physical capital is as important as providing money for human capital because our personal
investments can provide external benefits for education and therefore increase productivity in our
country.
Within the broad spectrum of free trade lie inward-oriented policies which strive to expand
productivity and heighten our country’s living standards. Free trade has no restrictions so when it
comes to things such as clothing, food, electronics, and medical care they are now more
accessible because of international trade systems. A way in which the government can improve
trade relations and make it easier for countries to exchange goods is by constructing several
seaports in our world’s major cities. Although ports are capital intensive facilities, having several
of them in our country will benefit the performance of the port transport chain and increase
seaborne exchanges. To have successful trade, the government has to have stable and predictable
regulations which will open opportunities for not only international trade but for local trade as
well.
Furthermore, economic growth can be promoted by enforcing property rights and political
stability. Property rights allude to the ability for people to have dominance over their own
resources and political stability refers to the integrity of the current government and how they’ll
make positive changes to our country to increase our standard of living. In developed countries,
policymakers are aware that having property rights and improving political stability is going to
help the growth and development of our economy. To better enforce property rights,
policymakers and whomever will work with the President should stay away from advocating
policies that subvert private property because that contradicts the implementation of property
rights in Lisavia. For example, people who hold property rights confront incentives to conserve
their benefits and having ownership of property forces them, in a way, to protect their present
value because they know that their future value is dependent on what they currently have.
Eventually, enforcing all of these tactics will enhance the standard of living in our country,
Lisavia. By having more educational facilities available for all to use, our economy will benefit
because it’ll have a well-educated population that could provide several ideas for economic
growth and development. In addition, having various seaports around the country can accumulate
capital and open opportunities for goods and services to enter the country. The final policy that
can be imposed to create the ideal standard of living in Lisavia is promoting political stability
and having property rights that will do nothing but help the expansion of our economy and
prosperity.