Econ 201 The Hockey stick of Human Prosperity Questions & Answers Rated A+

The pattern of GDP per capita growth over time is known as the "hockey stick of human prosperity" because: - ANSWER_A. it resembles a hockey stick when graphed. Prior to the 18th century, average life expectancy was about 30 years. Today: - ANSWER_A. life expectancy in some countries is about 80 years. Professor Boudreaux makes the point that the poorest person living in a modern economy like the U.S. today: - ANSWER_C. is incredibly wealthy compared to her ancestors. Unlike today, prior to the 18th century, most people: - ANSWER_B. knew how to make many of the things they consumed. The transition from each of us doing many things to each of us doing one thing and then trading for the goods we consume has contributed to a sharp increase in per capita GDP in modern economies. This fact highlights the importance of ________ to economic growth. - ANSWER_institutions like property rights and competitive and open markets What question launched the field of economics? - ANSWER_"Where does prosperity come from?" Professor Boudreaux points out that today we often wonder what causes poverty. What's the best response? - ANSWER_B. Poverty has been the normal state of affairs for most of human history; only recently have institutions created the incentives to motivate investment in the factors of production that lead to prosperity. Which of the following is true but not immediately obvious from observing the "hockey stick" of human prosperity? - ANSWER_B. While average GDP per capita has risen in recent centuries, it still differs greatly among countries.