CAS EC 102 Lecture Notes - Lecture 11: Planned Economy, Factors Of Production, Market Economy

• School: Boston University
• Department: Economics
• Course: CAS EC 102
• Professor: Bruce Watson

Document Summary

Interesting graphic of private enterprises increasing as collective shrinking. Private sector has increased a lot, taking up the slack left by the closure of state firms. Total factor productivity (tfp): the efficiency with which capital and labor are used higher for private firms boosts productivity. Private more efficient than state owned firms. Remove barriers to entry of new firms. Main idea: reforms in china since 1980 have boosted productivity and economic growth, but more reforms are necessary to keep it going (kind of like the institutional approach we learned about in lecture) International trade approach - country will grow (or not) if integrated into world economy. Institutional approach - growth depends on country developing good, functional institutions. Population: 1. 4b (july, 2017 est. ) (largest in world) Real gdp growth rate: 6. 7% (2017 est. ) Market economy - sooner or later, producers have to respond to what people want. Dumb ideas are not profitable - will die out.