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Econ 201 – Final Study Guide(Chapter’s 9 -15)*(Please Note: You must absolutely know the materials listed under “…youshould be able to…”; the Chapter Takeaways are additional explanation intended to help you study. You are not required to know cover all of the materials listed under Chapter Takeaways) Chapter 9Global Economic Growth and DevelopmentAfter you have studied this chapter, you should be able to1. Define economic growth, labor productivity, new growth theory, and why patents and innovation are important to economic growth;2. Identify the main determinants of economic growth;3. Indicate how economic growth affects production possibilities curves;4. Determine whether or not specific policies can contribute to economic growth;5. evaluate the relationship between population growth and economic growth;6. Identify the fundamental stages of economic development; and7. List factors that tend to be related to a faster pace of national economic development.Chapter Takeaways:1. Economic growth is defined as the rate of increase in per capita real GDP.3. New growth theorists maintain that if technological advances are rewarded, they will be forthcoming.
c. If people have incentives to increase their human capital through education and training,economic growth will be enhanced.4. Although many people disagree, it can be shown empirically that population growth is associatedwith economic growth. Hence, immigration may be viewed as a contributing factor to economicgrowth.5. When property rights are well defined, capital accumulation will ensue, and economic growth will beenhanced.6. While it is widely believed that population growth retards a nation’s economic development, there areno data to support this contention. Furthermore, average family size tends to decline as a nationdevelops.7. Most economically advanced nations have moved through three stages: agriculture, manufacturing,and services.