Ch 7 Ecological Economics: From an Empty World to a Full World (through Growth) - PowerPoint PPT Presentation

Loading...

PPT – Ch 7 Ecological Economics: From an Empty World to a Full World (through Growth) PowerPoint presentation | free to download - id: 6ff631-ZWEwM



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Ch 7 Ecological Economics: From an Empty World to a Full World (through Growth)

Description:

Ch 7 Ecological Economics: From an Empty World to a Full World (through Growth) ECN101 Prof. Grob Expectations Understand how growth rates are calculated Introduction ... – PowerPoint PPT presentation

Number of Views:19
Avg rating:3.0/5.0
Slides: 21
Provided by: Kathr173
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Ch 7 Ecological Economics: From an Empty World to a Full World (through Growth)


1
Ch 7 Ecological Economics From an Empty World
to a Full World (through Growth)
  • ECN101
  • Prof. Grob

2
How much am I worth?
3
Expectations
  • Understand how growth rates are calculated
  • Introduction to GDP
  • Use the rule of 72
  • Describe factors influencing growth
  • How do we know were close to a full world?

4
Rule of 72 The power of growth rates
  • How many years does it take to double the rate of
    growth?
  • Years to double 72 .
  • Growth rate

5
Economic growth
6
What is the GDP?
  • Gross Domestic Product is the
  • market value
  • of all final goods and services
  • produced
  • within a country
  • in a given year

7
What are the components of GDP?
  • Personal consumption expenditures
  • Gross private domestic investments
  • Government purchases of goods services
  • Net exports (exports minus imports)
  • GDPC I G X-M

8
Rates of Economic Growth
  • Rate of economic growth is the percent change in
    economic activity from one year to the next.
  • Many people look at the GDP, but there are other
    measures out there too.
  • Are new products in fact a reflection of our
    economic progress?

9
Calculating rates of economic growth
  • Rate of growth Y2 Real GDP Y1 Real GDP
  • Y1 Real GDP

10
Calculating the Real GDP
  • Real GDP Nominal GDP X 100
  • GDP deflator

11
How fast can the economy grow?
  • Mainstream view 2.5 growth per year
  • Some even say 5 may be sustainable
  • Several nations have been able to double their
    GDP in less than 28 years
  • What are the implications for use of natural
    resources?
  • What would ecological economists say?

12
What factors affect economic growth?
  • Availability of resources!
  • Initial levels of input (land, labor, capital)
  • Allocation of resources
  • Productivity
  • Capital Investments (human physical)
  • Government policies
  • Business policies
  • Consumer sentiment

13
Economies have different starting points
  • Natural resources
  • Physical capital
  • Human capital
  • Economic efficiency

14
How economies grow
  • Natural resources shift inputs toward
    production
  • Human capital provide incentives to work
  • Physical capital provide investment incentives
  • Increase efficiency in production

15
Natural resources are the first pillar of
economic growth
  • Gifts usable in production
  • Renewable vs. nonrenewable
  • Will technology provide alternatives?

16
Physical capital
  • Computers, machinery, tools help us to produce
    goods and services
  • Investment in physical capital can achieve
    productivity increases
  • It involves and opportunity cost future
    consumption for forgone consumption today
  • Government is a source of physical capital in
    that roads, bridges, airports and utilities
    comprise an infrastructure for human activity
    including production and that could increase
    efficiency

17
Human Capital
  • Improve knowledge, experience and skills of the
    workforce
  • Teach people to adapt to changing situations and
    to innovate
  • Formal training
  • On the job experience

18
Economic Efficiency
  • Producing more with fewer inputs
  • Invention and innovation
  • Market structures can influence efficiency as we
    will learn
  • Opening markets abroad (freeing resources abroad)
  • Import methods or reverse engineer

19
What can government do to increase growth?What
should government do to increase growth?
20
How do we know if were close to a full world?
About PowerShow.com