Individuals will invest more take more risks and work

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-Individuals will invest more, take more risks, and work harder when the property rights structure allows them to keep more of the fruits of their investing, risk taking, and labor. X Y PPF 1 PPF 2
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The Rule of 72 A simple arithmetical rule for compound calculation. It is a rough rule of thumb. It says that the time required for any variable to double is calculated by dividing its percentage growth rate into 72. E.g. and economy that experiences a 5% annual growth rate will take approximately 14.4 years (72/5=14.4) to double in size. Productivity Slow Down: In the early 1970’s, the U.S. began to experience a decline in real economic growth. This was noticed and recorded by many economist, in particular, by Edmond Denison of the Brooking Institute. Denison calculated that the real national income growth rate was approximately twice as high for the U.S. in the period 1948-73 as it was in the period 1973-82. This slow down in economic growth appeared to be largely the result of a slowdown in labor productivity, as measured by output per hour of labor. -What caused the slowdown in labor productivity? Decline in capital per hour worked a). Growth of the capital stock slowed down b). Growth in labor hours worked speeded up Decline in the quality of the labor force The early 1970’s said an increase in the # of women and young people who entered the labor force.
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