ECON 2K03 Chapter Notes - Chapter 1-4: Marginal Utility, Stoping, Frontier Thesis
21 Apr 2015
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Standard of living measure of the conditions under which people live in society. Real gdp inflation adjusted dollar of final goods and services produced and traded within an economy. Provides rough measure of aggregate well-being and avoids double counting: higher gdp typically means the better of the nations people living standards, gdp is typically considered best guess not free from errors (ex. Focusing on income measures alone excludes many dimensions of human existence that may be considered important. Human development index alternative to gdp that is a more comprehensive measure of gdp. Extensive economic growth increases in output of goods and services over time (useful to look at year- to-year changes in aggregate output) Intensive economic growth increases in per capita gdp over time. Thus, with the help of gunpower technology (not yet mastered by other continents) the expansion for europeans outward was much easier and less costly.
