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Unformatted text preview: 87-157-5ECON 2200 Moore Final Review Study GuideThe following study guide has been answered according to Dr. Moores class notes and the questions are posted on WebCT under Course Content > Tests and Study Guides > Study Guide for Final Exam.1. What is the economic way of thinking? (Review the 5 propositions for economic reasoning from Economic Insight 1.1.)Economic thinking is an apparatus of the mind, drawing conclusions based on the following propositions: People make choices, choices impose costs, incentives matter, the rules of the game influence choices (institutions matter), and knowledge and evidence affect opinions.2. Briefly explain why Conrad and Meyer's 1958 publication is often associated with the birth of economic history. What are the primary features of cliometrics?A. Conrad and J. Meyer published The Economics of Slavery in the Antebellum South in 1958. This publication estimated profitability of slave ownership using rate-of-return and the asset-pricing model. This publication established economic history (also known as cliometrics) as a field of study. Cliometrics uses hypothesis testing and historical data to explain economic and financial theories and Student Notes Reproduction Prohibited.187-157-5models.3. What mathematical relationship is described by the Rule of 70? Use numerical examples to support your answer. The Rule of 70 divide the number 70 by the annual GDP growth rate of an economy, and the answer will equal the number of years until GDP doubles.4. Why is the U.S. considered an economic success story? (Discuss the 2 key features that distinguish U.S. economic growth since about 1750.)The United States has always had solid growth rates. In the past 200 years, the average US growth rate has consistently been around 2-3%. GDP and GDP per capita have steadily risen with very few weak periods since the 1700s.5. What does the term economic development mean, and how is it measured? Discuss recent U.S. data on levels and growth rates of GDP and GDP per capita. Do data on levels and growth rates of GDP and per capita GDP provide adequate information for measuring economic development?Economic development is a measurement of the overall well-being of Student Notes Reproduction Prohibited....
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- Fall '07