ECON 202Midterm 1
Ceteris Paribus
"holding other things constant
British GDP per capita was $21,046 in the year 2000 and $21,567 in 2001. What is the growth rate?
2.5%
Specialization
Division of labor
T/F Disposable income is a better measure of well-being than per capita GDP because its counts goods and services that we do not buy such s healthcare and education if they are provided by a government
False
T/F Capitalism is democracy
False, capitalism coexists with many political systems
GDP per capita
GDP/population, measures average living standard
Disposable income
Income remaining for a person to spend or save after all taxes have been paid without going into debt
GDP
Market value of all goods produced in a country, total income earned within a country
What is ignored by economists
Women's domestic and reproductive labor not factored into economic models
Which of the following variables have NOT followed the so-called "hockey-stick" trajectory - that is little to no growth for most of history followed by a sudden and sharp change to a positive growth rate?
a.) GDP per capita b.) labor productivity c.) inequality d.) atmospheric CO2
Growth Rate
change in GDP/ original level of GDP
Adam Smith
considered the father of economics, popularized view that individual self-interest can serve the public good
Why did the Industrial Revolution first occur in Britain about 1800?
high wages and cheap coal
In a capitalist system:
most production takes place in firms, inputs and outputs are private property
Was Malthus correct in concluding that population growth will outstrip food production growth?
no, technological and institutional innovations have permitted food supplies to more than keep pace with population growth
Since the Industrial Revolution we have witnessed a ___________.
permanent technological revolution
Capitalism includes
private property, markets, firms
What is the most important factor that explains differences in living standards across countries?
productivity
Invisible hand
unobservable market force that helps the demand and supply of goods in a free market to reach equilibrium automatically