Macro econ ch12

Question 1

Modern economic growth

Answer 1

rapid and sustained economic growth over the past
two centuries (think since Industrial Revolution)

Question 2

Industrial Revolution

Answer 2

widespread use of power-driven machinery and the
economic and social changes that resulted in the first half of the 1800s
- new machines
-began in great britian and spread to the u.s

Question 3

Rule of Law

Answer 3

the process of enacting laws that protect individual and entity
rights to use their property as they see fit. Laws must be clear, public, fair, and
enforced, and applicable to all members of society

Question 4

Contractual rights

Answer 4

the rights of individuals to enter into agreements with
others regarding the use of their property providing recourse through the legal
system in the event of noncompliance; based on property rights

Question 5

Protection of property rights

Answer 5

property rights includes physical property as
well as the right to your training and experience

Question 6

Labor productivity

Answer 6

the value each employed person creates per unit of his or her
input; determined by a couple factors

Question 7

Human Captial

Answer 7

accumulated knowledge (from education and experience), skills, and
expertise that the average worker in an economy possesses

Question 8

technological change

Answer 8

Technological change  combination of invention and innovation
 Invention  advances in knowledge
 Innovation  putting those advances to use in a new product or service

Question 9

economies of scale

Answer 9

Economies of scale  the cost advantages that industries obtain due to size