Econ final exam - Exam 1 According to William Parker...

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Exam 1 According to William Parker (1986), economics provides historians with theoretical framework for organizing and interpreting historical facts Alfred Conrad and John Meyer Used asset pricing model to study antebellum slavery Believed Phillips was WRONG in claiming slave owners systemically engaged in irrational behavior Theoretically, slave prices were INCREASED due to a DECREASE in slave maintenance, INCREASE in price of cotton, INCREASE in the marginal product of a slave, and DECREASE in the discount rate Rule of 70 If the growth rate of real GDP is 3% per year, real GDP will double in about 70/3= 23.33 years If the annual growth rate of GDP is 2%, GDP will double every 35 years Economic way of thinking When incentives change, behavior changes in predictable ways Choices involve risk, outcomes cannot be guaranteed because consequences of choice lie in the future Increase in activity: benefits>costs Decrease in activity: costs>benefits Institution influence choices Opinion determined by knowledge and evidence Economists assume that the cost of any decision is the next best alternative that must be forgone Cliometric research—study and explanation od economic development Characteristics of Scientific method Data to models New and better data Economic development Midwestern farm mortgages (1870-1890) Real interest rates were falling data According tot he text, before 1750 _____ were common for both wealthy and poor people Malnutrition Short life expectancies Disease Frequent illness “The GDP Mirage” recent US data indicate Venture capital investment is rising Firms are increasing expenditures for work training Non production jobs in manufacturing are declining more rapidly than production jobs Most US firms are expanding their R&D staff Out sourcing to China, India, and other countries Firms reducing R&D spending Venture capital investment falling Expenditures for employee training falling
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US GDP includes amount of goods and services produced in a year Increases in price level cause nominal GDP increase Over the last 250 years, US real GDP per capita has grown at annual rate of roughly 2% Liechtenstein, Qatar, Luxemburg, Bermuda and Kuwait all have the highest GDP Nominal GDP has not been adjusted for inflation Capital migration has tended to cause an INCREASE in income growth in capital importing regions and a DECREASE in income growth in capital exporting regions INCREASE labor exporting regions lead to DECREASE capital exporting regions HEIGHT is highly correlated with nutrition, disease, and income Increases economists measure of well being of the people The average height adult, white, American males increases steadily between 1800 and 1900 Cox and Alm 37.5% of individuals in the top income quintile in 19o75 had moved to the lower quintile by
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This note was uploaded on 03/03/2011 for the course ECON 2200 taught by Professor Moore during the Fall '07 term at University of Georgia Athens.

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Econ final exam - Exam 1 According to William Parker...

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