Lecture 17 - Lecture 17: Why Are Some Countries So Rich and...

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Lecture 17: Why Are Some Countries So Rich and Others So Poor? Characteristics of Rich Nations stable democratic governments with a rule of law and respect for political, civil, and economic rights capitalist committed to free trade lots of investment in capital goods well educated workforce with a long life expectancy located away from the equator well developed transportation and communication systems Characteristics of Poor Nations dictatorships or ex-communist governments involved in wars, revolutions, and coups export lots of raw materials located near equator rapid population growth Lecture 18: Money What is Money? medium of exchange store of value unit of account Why Money? Money was created to reduce the costs of exchange. Specialization in the production process increases output. But, while each individual may specialize as a producer, she still wants to consume a variety of goods and services. Some
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Lecture 17 - Lecture 17: Why Are Some Countries So Rich and...

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