Chapter 6: GDP
Last time: Problems w/GDP
-black mkt, leisure, non-priced goods
Why use GDP?
1. GDP is positively correlated w/ life expectancy
2. positively correlated w/years of schooling
3. GDP as a measure of the ability to obtain goods and services
A MEASURE OF MY ABILITY TO GET STUFF
Chapter 7: Intro to Economic Growth
main question: why are some countries poor and some countries rich?
• climate --> historically inconsistent
geography --> historically inconsistent
• corruption --> dis da good hypothesis
• everyone used to be very poor
some countries have experienced tremendous growth while others have not
-even small, steady growth can have tremendous impact on an economy’s size (ex:
Rule of 70)
• Rule of 70: if a country grows at an avg. rate of x% a year, the economy of that
country will double in size in 70/x years
it is theoretically possible for any country to experience economic growth
However, should talk about the causes/sources of econ growth...
FROM THE DATA:
• countries with high GDP per capita have more capital per worker and more