Презентация к уроку английского языка "Economic Growth" -

Economic Growth
Increase in real GDP or real GDP per capita over some time period
Percentage rate of growth
Growth as a goal
Arithmetic of growth: Rule of 70
Approximate
number of years
required to double
real GDP
=
70
annual percentage rate
of growth
LO1
25-

Economic Growth
Growth in U.S. real GDP 1950-2009
Increased 6 fold
3.2% per year
Growth in U.S. real GDP per capita
Increased more than 3 fold
2% per year
Qualifications
Improved products and services
Added leisure
Other impacts
LO1
25-

Modern Economic Growth
Began with the Industrial Revolution in late 1700s
Ongoing increases in living standards
Time for leisure
Social change
Democracy
Human lifespan doubled
LO2
25-

Modern Economic Growth
Began in Britain
Has spread slowly
Starting date main cause of worldwide differences in living standards
Catching up is possible
Leader countries invent technology
Follower countries adopt technology
Can grow faster
LO2
25-

Modern Economic Growth
Real GDP Real GDP Average annual
per capita, per capita, growth rate,
Country 1960 2007 1960-2007
United States $ 14,766 $42,887 2.3%
United Kingdom 11,257 32,181 2.3
France 9,347 29,663 2.5
Ireland 6,666 41,625 4.0
Japan 5,473 30,585 3.7
Singapore 4,149 44,619 5.2
Hong Kong 3,849 43,121 5.3
South Korea 1,765 23,850 5.7
Figures are in 2005 dollars
Source: Penn World Table version 6.3, pwt.econ.upenn.edu
LO2
25-

Modern Economic Growth
LO3
25-

Institutional Structures of Growth
Strong property rights
Patents and copyrights
Efficient financial institutions
Literacy and widespread education
Free trade
Competitive market system
LO3
25-

Determinants of Growth
LO3
25-

Accounting for Growth
Factors affecting productivity growth
Technological advance (40%)
Quantity of capital (30%)
Education and training (15%)
Economies of scale and resource allocation (15%)
LO3
25-

Productivity Growth
Average rate of growth
1.5% per year 1973-1995
2.8% per year 1995-2009
Affects real output, real income, and real wages
Pay higher wages without lowering profit
LO4
25-

Productivity Growth
Microchip/information technology
New firms and increasing returns
Sources of increasing returns
More specialized inputs
Spreading of development costs
Simultaneous consumption
Network effects
Learning by doing
Global competition
LO4
25-

Economic Growth
Is economic growth desirable and sustainable?
The antigrowth view
Environmental and resource issues
In defense of economic growth
Higher standard of living
Human imagination can solve environmental and resource issues
LO5
25-

Economic Growth
Growth is the path to greater material abundance
Results in higher standards of living
Increases leisure time
Allows for the expansion and application of human knowledge
LO5
25-