For this task on the economic way of thinking and economic indicators I have chosen data from the Kingdom of Bahrain The

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For This Task On The Economic Way Of Thinking And Economic Indicators I Have Chosen Data From The Kingdom Of Bahrain The 1 (234.27 KiB) Viewed 10 times

For this task on the economic way of thinking and economic indicators I have chosen data from the Kingdom of Bahrain The Bahraini currency is the Bahraini dinar, or BD, and each dinar is worth $2.65. Workers' paychecks are subject to, essentially, no taxes. The total population of the island kingdom is roughly 1.7 million Bahrain is dominate the public sector employment and the private sector is primarily comprised of ex-pats from India, Pakistan, Bangladesh and Philippines. Indicator Total Employment Bahraini Employment Non-Bahraini Employment Monthly Wage, Public Sector Monthly Wage, Private Sector Real GDP in billions of BDs 2020Q1 743,620 156,746 586,874 BD702 BD441 BD3.151 2020Q4 687,700 152,678 535,022 BD705 BD447 BD3.086 2021Q1 685,204 153757 531,447 BD714 BD455 BD3.064 The inflation rate in Bahrain between 2020Q1 and 2021Q1 (year-over-year) was -2.7%; obviously prices fell in general. Lastly, like the U.S., Bahrain was hit by the Covid-19 pandemic during this period. a) Note the difference between the wages in the public (i.e., government workers) and private sectors and the nationality of those who dominate those sectors. Does this wage gap surprise you? Whether it does or does not, what economic and/or social factors might explain this 60% difference in wage levels? b) Now let's consider the issue of real versus nominal. Take a look at the wages of the two sectors. Did they rise or fall in nominal terms year-over-year (2020Q1 to 2021Q1) and if so by how much (by sector)? However, what really matters in economics are real values. What were the changes in real wages earned by the two sectors? Explain how you came to this conclusion.