The capitalist revolution

Question 1

in many countries when did living standards dramatically rise

Answer 1

at the time of the capitalist revolution

Question 2

capitalism d

Answer 2

economic system in which private property, markets and firms play a major role

Question 3

what has the rise in living standards ben accompanied by

Answer 3

changes in population,
environmental impacts,
changes in inequality between and within countries

Question 4

when did the industrial revolution happen

Answer 4

19th and 20th century

Question 5

what is a ratio scale

Answer 5

where the scale on the axis doubles (from $250 to $500 to $1000)

Question 6

growth rate equation (basic)

Answer 6

(change in GDP)/

original level of GDP

Question 7

was the hockey-stick kink more or less abrupt in Britain and when did growth begin

Answer 7

less abrupt,

1650

Question 8

was the hockey-stick kink more or less defined in Japan and when did growth begin

Answer 8

more defined,

1870

Question 9

why did gdp per capita in china and india fall during industrial revolution

Answer 9

because european nations dominated their economics and politics

Question 10

how recently did the kink happen in china and india

Answer 10

china - 1980,

india - even more recently

Question 11

what do we learn from the hockey stick

Answer 11

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

Question 12

gdp d

Answer 12

GDP is a measure of the total output of the economy in a given period

Question 13

disposable income d

Answer 13

income available after paying taxes and receiving transfers from the goverment

Question 14

what is a person’s disposable income a measure of

Answer 14

his or her living standards, but it omits important aspects of wellbeing

Question 15

what are some things that disposable income leaves out

Answer 15

quality of social and physical environment,
goods and services we do not buy (health education),
goods and services produced within household (meals)

Question 16

what is one way that gdp per capita is better than disposable income

Answer 16

gdp includes g and s produced by the government (schooling, national defense)

Question 17

why is it difficult to measure the value of government services

Answer 17

they are not typically sold, (so can’t take the price paid)

only measure is how much cost to produce

Question 18

industrial revolution d

Answer 18

wave of technological advances starting in britain in the 18th century, which transformed a craft-based economy into a commercial and industrial economy

Question 19

technology d

Answer 19

a process taking a set of materials and other inputs, including the work of people and machines, to produce an output

Question 20

technological progress d

Answer 20

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

Question 21

how does light relate to technological change

Answer 21

today the productivity of labour in producing light is half a million times greater than it was among our ancestors

Question 22

when did the world’s population begin to grow rapidly and why

Answer 22

20th century with the development of improved sewage, clean water and other public health measures

Question 23

demographic transition d

Answer 23

slowdown in population growth as the fall in death rate is more than balanced by a fall in birth rates

Question 24

why did the demographic transition happen

Answer 24

desire for fewer children, combined with public policies discouraging larger families (China)

Question 25

why did cities grow

Answer 25

increased productivity of labour in agriculture, fewer farmers required so people left farming to pursue other occupations

Question 26

what was a bi-product of the industrial revolution

Answer 26

climate change (measurably larger amounts of CO2 in the earth’s atmosphere, increase in northern hemisphere’s temperature)

Question 27

is climate change a local or global development

Answer 27

global development

Question 28

is climate change just a global thing

Answer 28

no, many environmental developments are local, cities=respiratory and high levels of harmful emissions, rural=deforestation and depletion of clean water

Question 29

private property means that you can

Answer 29

enjoy in way that you choose,
exclude others from their use,
dispose of them,

Question 30

capital goods d

Answer 30

equipment, buildings, raw materials and other input used in producing goods and services

Question 31

market d

Answer 31

these allow people to exchange products and services for their mutual benefit

Question 32

firm d

Answer 32

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

Question 33

demand side d

Answer 33

side of the market who offer money in return for some other good or service

Question 34

supply side d

Answer 34

side of the market who offer something in return for money

Question 35

what makes a capitalist economic system different from a market based economy

Answer 35

the existence of firms

Question 36

when can capitalism be a dynamic economic system

Answer 36

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)

Question 37

capitalist revolution d

Answer 37

rapid improvements in technology combined with the emergence of a new economic system

Question 38

developmental state d

Answer 38

government that takes a leading role in promoting the process of economic development through public investments, subsidies, education and other public policies

Question 39

example of developmental state

Answer 39

south korean government

Question 40

democracy d

Answer 40

political system defined by individual rights such as freedom of speech, assembly, and the press and fair elections

Question 41

gini coefficient d

Answer 41

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)

Question 42

lorenz curve d

Answer 42

graphical representation of inequality of some quantity such as wealth or income. Individuals arranged in ascending order of how much quantity they have

Question 43

gini coefficient equation

Answer 43

A/A+B

Question 44

what is the main reason for inequality

Answer 44

differences between the way governments tax wealthy families and transfer to less well off

Question 45

economics d

Answer 45

study of how people interact with each other, and with their natural surroundings, in providing their livelihoods, and how it changes over time.