Essay on History of Economics

2136 WordsJan 26, 20129 Pages
Economics 515 Midterm 1 1. Economic growth vs. economic development, define extensive growth & intensive growth Economic growth is the sustained increase in the output of goods/services of a society. Economic development is economic growth plus changes in technical and institutional arrangements by with output are produced. Extensive growth- increase in output due to increase in inputs (labor force grows, land stock increases) Intensive growth- increase in output per unit of input – productivity increases (technological change) 2. List 2 data sources researchers use to estimate historical standards of living; three indicators of economic development other than National Income measures of interest to economists Data…show more content…
List 4 contributions of the earliest civilizations (those that eventually formed the Babylonian Empire) and explain how each was important to continued economic growth.  Writing- originated in Sumarian civilization o 3500 BCE-Sumarian draw pictograms on clay tablets o Bureaucratic necessity: records of tax collection/tributes o 3200 BCE- ideograms- symbols for sun, moon, phonograms, cuneiform script=”wedge” writing  Arithmetic- keeping track of accounts, creation of 0 value  Weights/measures- standard of trade  Geometry- measurement of fields/buildings (architecture)  Code of Law- civilization required development of law, regulate interactions of men/women o Code of Hammurabi c. 1700 BCE- regulation of contracts, irrigation procedures, regulating lending parties (max interest
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