Is It a Good Idea for the Government to Encourage

question 140

Essay

Is it a good idea for the government to encourage workers to retire early and give them incentives to do so? How would this policy affect the economy's potential GDP?

---

Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries, intended to raise revenue or protect domestic industries.

Internationally Traded Goods

Products and services that are bought and sold across national borders, subject to international agreements and regulations.

Comparative Advantage

The capability of an entity to manufacture a product or provide a service at a reduced opportunity cost compared to its competitors.

Opportunity Cost

The cost of foregone alternatives, the value of the next best alternative that is given up when making a decision.