The capitalist revolution Flashcards
in many countries when did living standards dramatically rise
at the time of the capitalist revolution
capitalism d
economic system in which private property, markets and firms play a major role
what has the rise in living standards ben accompanied by
changes in population,
environmental impacts,
changes in inequality between and within countries
when did the industrial revolution happen
19th and 20th century
what is a ratio scale
where the scale on the axis doubles (from $250 to $500 to $1000)
growth rate equation (basic)
(change in GDP)/
original level of GDP
was the hockey-stick kink more or less abrupt in Britain and when did growth begin
less abrupt,
1650
was the hockey-stick kink more or less defined in Japan and when did growth begin
more defined,
1870
why did gdp per capita in china and india fall during industrial revolution
because european nations dominated their economics and politics
how recently did the kink happen in china and india
china - 1980,
india - even more recently
what do we learn from the hockey stick
for a long time living standards did not grow (in any sustained way),
when growth did occur it happened at different times in different countries
gdp d
GDP is a measure of the total output of the economy in a given period
disposable income d
income available after paying taxes and receiving transfers from the goverment
what is a person’s disposable income a measure of
his or her living standards, but it omits important aspects of wellbeing
what are some things that disposable income leaves out
quality of social and physical environment,
goods and services we do not buy (health education),
goods and services produced within household (meals)
what is one way that gdp per capita is better than disposable income
gdp includes g and s produced by the government (schooling, national defense)
why is it difficult to measure the value of government services
they are not typically sold, (so can’t take the price paid)
only measure is how much cost to produce
industrial revolution d
wave of technological advances starting in britain in the 18th century, which transformed a craft-based economy into a commercial and industrial economy
technology d
a process taking a set of materials and other inputs, including the work of people and machines, to produce an output
technological progress d
a change in technology that reduces the amount of resources 9 labour, machines, land, energy, time) required to produce a given amount of the output
how does light relate to technological change
today the productivity of labour in producing light is half a million times greater than it was among our ancestors
when did the world’s population begin to grow rapidly and why
20th century with the development of improved sewage, clean water and other public health measures
demographic transition d
slowdown in population growth as the fall in death rate is more than balanced by a fall in birth rates
why did the demographic transition happen
desire for fewer children, combined with public policies discouraging larger families (China)
why did cities grow
increased productivity of labour in agriculture, fewer farmers required so people left farming to pursue other occupations
what was a bi-product of the industrial revolution
climate change (measurably larger amounts of CO2 in the earth’s atmosphere, increase in northern hemisphere’s temperature)
is climate change a local or global development
global development
is climate change just a global thing
no, many environmental developments are local, cities=respiratory and high levels of harmful emissions, rural=deforestation and depletion of clean water
private property means that you can
enjoy in way that you choose,
exclude others from their use,
dispose of them,
capital goods d
equipment, buildings, raw materials and other input used in producing goods and services
market d
these allow people to exchange products and services for their mutual benefit
firm d
business organisation which employs people, and purchases inputs, to produce and market goods and services at prices that more than cover the price of production
demand side d
side of the market who offer money in return for some other good or service
supply side d
side of the market who offer something in return for money
what makes a capitalist economic system different from a market based economy
the existence of firms
when can capitalism be a dynamic economic system
private incentives,
firms led by those with proven ability (to produce goods at low cost),
public policy supporting these conditions (and supplying other essential g&s)
capitalist revolution d
rapid improvements in technology combined with the emergence of a new economic system
developmental state d
government that takes a leading role in promoting the process of economic development through public investments, subsidies, education and other public policies
example of developmental state
south korean government
democracy d
political system defined by individual rights such as freedom of speech, assembly, and the press and fair elections
gini coefficient d
measure of inequality of any quantity such as income or wealth, varying from zero (no inequality) to one (single individual receives all of the quantity)
lorenz curve d
graphical representation of inequality of some quantity such as wealth or income. Individuals arranged in ascending order of how much quantity they have
gini coefficient equation
A/A+B
what is the main reason for inequality
differences between the way governments tax wealthy families and transfer to less well off
economics d
study of how people interact with each other, and with their natural surroundings, in providing their livelihoods, and how it changes over time.
