ECON 2010 Chapter Notes - Chapter 7: Capital Formation, National Science Foundation, Social System
Document Summary
Pace of technical change is accelerating: inventions are not sufficient to create growth, products must be commercialized and sold. Use an economic model to study the remarkable rise in living standards: real gdp per person is a measure of the goods available to a typical person. One clue to growing prosperity in the 20th century gdp per person in 2010 was 12 times greater than it was in 1870. Comparisons across long periods are complicated by lack of data: the variety, quantity, and quality of goods increased enormously in the 19th and. In 1870, china"s output per person was about 120% that of ghana"s: by 2010, china had more than 4 times that of ghana"s, china"s growth over the period was 2. 0% and ghana"s was 1. 1% Compound interest pays interest on the original deposit and all previously accumulated interest: interest paid in year 1 earns interest in year 2, deposited at 4% interest in 1800 is ,937. 56 in 2015.
