We expect societies that are less resistant to change to end up being more productive, and therefore wealthier.Technology is as much about the way tools are used as it is about the tools themselves.
In these cases, groups can use their power to impede change.
Doing so may be good for those groups in the short-run, but it can harm the long-run well-being of the society.
Productivity is not an aggregate number (like output), but a rate (like output per capita).
Higher productivity means more can be produced for a given amount of people, raising the wealth of a typical person.
These developments are not mechanical, but organizational.
Institutions—businesses, governments and other organizations—are another important factor in explaining why some nations are richer than others.
Essays will be judged in part by how well they adhere to the economic concepts listed in Economic Principles to Keep in Mind.
These reflect some of the general points on which practically all economists agree.
Imagine two nations that were exactly identical in every respect—resources, population, culture, etc—except that one society had higher productivity.
We would expect the more productive society to produce a greater output of goods.
Comments Essays On Poverty And In The United States
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