Wealth of Nations and Economic Growth

… a core topic in Macroeconomic Policy

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Topic description

This topic introduces students to differences in the per capita wealth of countries and the reasons for differences in national rates of economic growth.

The Atlas treatment of this topic closely follows that in Chapter 2 – The Wealth of Nations and Economic Growth, in the open access course entitled Principles of Macroeconomics presented by Tyler Cowen and Alex Tabarrok on the Marginal Revolution University (MRU) online education platform (http://www.mruniversity.com/courses/principles-economics-macroeconomics, accessed 22 April 2016).

Topic learning outcome

Appropriately utilize and interpret results of applying to public policy problems the basic principles of growth theory, including following core concepts.

Core concepts associated with this topic
Contributors to Growth

Growth Miracles and Growth Disasters

Growth Rates and National Wealth

Hockey Stick of Human Prosperity

Innovation and Growth

Ratio (Logarithmic) Scale

Rule of 70

Institutions and Growth

National Wealth

Other (non-core) concepts

These concepts were not used directly in the MRU lessons but have been identified from courses and have short descriptions on the Old Atlas. Some may be added to the core and be elaborated in a page in this Atlas.

to come
Readings

Atlas pages: Wealth of Nations and Economic Growth and its associated Concepts.

Alex Tabarrok, Growth Rates are Crucial, Marginal Revolution University, at  http://www.mruniversity.com/courses/principles-economics-macroeconomics/growth-rate-real-gdp-per-capita, accessed 22 April 2016.

Alex Tabarrok, Growth Miracles and Growth Disasters, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/economic-growth-miracle-and-disaster, accessed 22 April 2016.

Alex Tabarrok, The Puzzle of Growth, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/wealth-of-nations-economic-growth, accessed 22 April 2016.

Don Boudreaux, An Orgy of Innovation, Marginal Revolution University, at http://www.mruniversity.com/courses/everyday-economics/hockey-stick-human-prosperity-innovation-invention-entrepreneur, accessed 22 April 2016.

Don Boudreaux, The Hockey Stick of Human Prosperity, Marginal Revolution University, at http://www.mruniversity.com/courses/everyday-economics/trade-growth-hockey-stick-human-prosperity, accessed 22 April 2016.

Alex Tabarrok, Basic Facts of Wealth, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/gdp-per-capita-purchasing-power-parity-example, accessed 22 April 2016.

Alex Tabarrok, Rule of 70, Marginal Revolution University, at http://www.mruniversity.com/courses/development-economics/rule-70, accessed 22 April 2016.

Alex Tabarrok, The Importance of Institutions, Marginal Revolution University, at http://www.mruniversity.com/courses/principles-economics-macroeconomics/north-korea-and-south-korea-institutions, accessed 22 April 2016.

Textbook readings in MPP and MPA courses 

Assessment questions (from MRU Practice Questions for Chapter 2)

  1. Mexico and Bulgaria have roughly the same GDP per capita in 2014. Based on what you’ve learned in the video, is Bulgaria closer in GDP per capita to the United States or to the Central African Republic?
  2. Since 1800, real GDP per capita in the United States has doubled roughly every
  3. If a process is growing at a rate of x percent per period, then the doubling time is approximately 70/x periods. This is known as:
    1. th
  4. Which graph below is drawn with a ratio scale?
  5. The following institution(s) promote(s) economic growth:
  6. Which of the following has not been a cause of rising prosperity?
  7. Which of the following countries’ economies fell further behind in the 20th century?
  8. Which of the following is a factor of production and best defined as ideas and inventions?

Page created by: Ian Clark, last modified on 23 April 2016.

Image: What are the Factors Affecting Economic Growth Rate and Development, SolutionZoom, at http://www.solutionzoom.com/universal-factors/what-are-the-factors-affecting-economic-growth-rate-and-developement/, accessed 22 April 2016.