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)
