Economic Growth
Economic Growth results in an outward shift of this curve (see slides).
What is the PPC Curve?
(Production Possibilities Curve)
_________ Productivity measures output per worker... or Total GDP ÷ Total "Labor" Hours.
What is Labor Productivity?
This factor is where New Growth Theory differs from Traditional Growth Theory.
(What did Traditional Growth Theory fail to take into account?)
What is Technology / Changes in Technology?
Innovations transform ________ into things that are useful to society.
What are Inventions?
A country that focuses mainly on farming and is not too developed is considered to be in this stage of Economic Development (stage 1/3).
What is the Agricultural Stage?
True or False: Economic Growth is never a bad thing, and always benefits society when it occurs.
What is False?
(see slides)
(True or False): Changes in Real GDP and changes in Labor Productivity are strongly correlated.
What is True?
(see slides)
___ & ___ by businesses helps to create advancements in materials, products, and machines.
What is R&D?
(Research & Development)
This is the economy's total store of ideas. ("Think!")
What is Knowledge?
The United States was considered to be in this stage of Economic Development in the late 1700s - early 1800s (stage 2/3).
What is the Manufacturing / Industrial Stage?
There have been multiple instances of Real GDP per Capita decreasing in the history of the United States, including this "bubble" that popped after the turn of the millennium.
What is the "dot.com" bubble?
This action is fundamental for economic growth; if neither businesses nor people do this, then economic growth cannot occur.
What is Saving?
A government _____ is a 20-year protection that is meant to help inventors make, use, and sell their inventions exclusively.
What is a Patent?
The act of a government "shielding" its businesses back home from foreign competition (via tariffs and regulations) is known as this.
What is Protectionism?
The most developed countries in the world are in the final stage of Economic Development, where they don't need to focus solely on farming or manufacturing (stage 3/3).
What is the Service Stage?
The Rule of 70 states that the number of years for a country's ________ to double = 70 ÷ average rate of economic growth for that country.
What is Per Capita GDP?
When Europe as a continent reached stagnant (slowing down to nothing) growth, it was diagnosed with this economic medical disorder!
What is Eurosclerosis?
True or False: The only way entrepreneurship can consistently occur is if a country has a well-established and functioning legal system.
What is True?
This concept revolves around new products and technologies that come and replace existing ways of doing things. In with the new and out with the old!
What is Creative Destruction?
When a country has a lengthy period of zero economic growth, it is known as ________ Stagnation.
What is Secular?