UGBA+101B+-+Homework+2+Key - Homework Due January 31st by...

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Homework Due: January 31 st by 9:30 am. 1. What are three important factors of production (e.g., land, labor, etc.) that make industrialized nations richer than they were 150 years ago and richer than non- industrialized nations are today? Find one piece of evidence each is important. Good answer #1 Industrial revolution – the period of 18 th and 19 th centuries was the reason why industrialized nations now are richer that non-industrialized. First of all, new inventions made production become more effective and efficient. Technology boosted the pace and quality of production, letting to produce more output. Moreover, the structural change – increased population growth - allowed the economy to grow even faster as it satisfied increased demand for labor and products – consumption increased too. Additionally, human capital also played a big role why industrialized countries are rich now. People got more knowledgeable and educated which caused the more efficient use of new technology as well as its application in the production processes. Labor , especially in the entrepreneurial sector, became more skilled and able to manage processes better and more productive and profitable. Therefore, technology, labor and human capital were the main important factors of production that helped industrial nations to get wealthier and increased their standards of living. Alternative good answers: a. Education/Human Capital The countries known as the East Asian Tigers (Hong Kong, Singapore, South Korea, Taiwan) experienced a growth of real income per person of over 7% per year from 1966 to 1990. While some economists cite the adoption of foreign technologies as a key factor, others cite the increase in
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UGBA+101B+-+Homework+2+Key - Homework Due January 31st by...

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