ILRLE 3440 Study Guide - Comprehensive Final Exam Guide - Corn Laws, Root Mean Square, Agriculture
20 Nov 2018
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Economic history and the history of economic thought not the same thing. Economic theories were developed based on what was going on at the time. Comparative advantage (who can produce what more e ciently) The use of inanimate objects (such as coal) as a source of power. Think of output as the hare and population as the tortoise. Output usually goes ahead but population always catches up with output. Sometimes the population goes ahead which leads to disaster such as the great plague in the14th century. Since there are technological constraints populations necessary decrease soon after they grow beyond output. Output explodes in the 1800s, more than tripling in the century from to . Most of this economic growth was concentrated in western europe and north america, moving from 90% of asia"s per capita income to 670% of asia"s per capita income. Now asia is converging on the west"s per capita income with increase output in china and.
