Why do economies grow
This presentation is the property of its rightful owner.
Sponsored Links
1 / 24

Why Do Economies Grow? PowerPoint PPT Presentation


  • 69 Views
  • Uploaded on
  • Presentation posted in: General

Why Do Economies Grow?. Lesson 3. Colonial Economy Mystery. North America offered no known gold or silver for the taking. There were no spices to trade. Eventually, however, the colonies were able to prosper. Why?

Download Presentation

Why Do Economies Grow?

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Why do economies grow

Why Do Economies Grow?

Lesson 3


Colonial economy mystery

Colonial Economy Mystery

North America offered no known gold or silver for the taking. There were no spices to trade. Eventually, however, the colonies were able to prosper. Why?

Are increases in the quality and quantity of the four key resources needed for economic growth and prosperity?


Mystery nations

Mystery Nations


Who is wealthy

Who is Wealthy?

  • Some nations of the world have become wealthy, while others have not.

  • Why is this so?

    • Do the quality and quantity of natural resources play a role?

      • Labor?

      • Capital?

      • Entrepreneurial talent?

    • Do economic systems and institutions matter?

      • What role does a stable and well-enforced set of private property rights play?

      • What about the freedom to trade goods, services and resources?


Visual 3 2 who has the highest income

Visual 3.2. Who Has the Highest Income?

  • Country A Wealth Score = ___Give wealthiest 4, next wealthiest 3 next wealthiest 2 and poorest 1

    • Under European colonial rule from early 1500s until 1816

    • Benefits from rich natural resources including fertile plains, lead, zinc, iron ore, petroleum and uranium

    • Population of nearly 40 million people in 2004 (small for a nation of this size)

    • Land size about three-tenths the size of the United States

  • Country B Wealth Score = ___Give wealthiest 4, next wealthiest 3 next wealthiest 2 and poorest 1

    • Under European colonial rule from early 1500s until 1822

    • Benefits from rich natural resources including bauxite, gold, iron ore, nickel, phosphates, tin, uranium, petroleum, hydropower and timber

    • Population of over 184 million

    • Land area slightly smaller than the United States


Visual 3 2 who has the highest income1

Visual 3.2. Who Has the Highest Income?

  • Country C Wealth Score = ___Give wealthiest 4, next wealthiest 3 next wealthiest 2 and poorest 1

    • Under European rule from the nineteenth century until 1947

    • Benefits from rich natural resources including large coal reserves, iron ore, manganese, mica, titanium ore, chromite, natural gas, petroleum, limestone and agricultural land

    • Population of more than 1 billion

    • Land area slightly more than one-third of the United States

  • Country D Wealth Score = ___ Give wealthiest 4, next wealthiest 3 next wealthiest 2 and poorest 1

    • Under European rule from 1841 to 1997

    • Good harbor but no natural resources

    • Population of nearly 7 million

    • Land area six times larger than Washington D.C.


Mystery nations revealed

Mystery Nations Revealed


Country a

Country A

Argentina

  • Population

    • 40.482 million (July 2008 est.)

  • GDP per capita

    • $14,500 (2008 est.)

  • Life Expectancy

    • 76.36 years

  • Literacy Rate

    • 97.2%

  • Infant Mortality

    • 11.78 deaths/1,000 live births


Country b

Country B

Brazil

  • Population

    • 196,342,592

  • GDP per capita

    • $10,300 (2008 est.)

  • Life expectancy

    • 71.71 years

  • Literacy rate

    • 88.6%

  • Infant mortality

    • 23.33 deaths/1,000 live births


Country c

Country C

India

  • Population

    • 1,147,995,904 (July 2008 est.)

  • GDP per capita

    • $2,900 (2008 est.)

  • Life Expectancy

    • 69.25 years

  • Literacy Rate

    • 61%

  • Infant Mortality

    • 32.31 deaths/1,000 live births


Region d

Region D

Hong Kong

  • Population

    • 7,018,636 (July 2008 est.)

  • GDP per capita

    • $45,300 (2008 est.)

  • Life Expectancy

    • 81.77 years

  • Literacy Rate

    • 93.5%

  • Infant Mortality

    • 2.93 deaths/1,000 live births


Two additional cases

Two Additional Cases


United states

United States

United States

  • Population (07/08 est)

    • 303,824,640

  • GDP per capita (2008 est.)

    • $48,000

  • Life Expectancy

    • 78.14 years

  • Literacy Rate

    • 99%

  • Infant Mortality

    • 6.3 deaths/1,000 live births


Saudi arabia

Saudi Arabia

Saudi Arabia

  • Population

    • 28,146,656 note: includes 5,576,076 non-nationals (July 2008 est.)

  • GDP per capita

    • $21,300 (2008 est.)

  • Life Expectancy

    • 76.09 years

  • Literacy Rate

    • 78.8%

  • Infant Mortality

    • 11.94 deaths/1,000 live births


Natural resources paradox

Natural Resources Paradox

  • Natural resources have contributed to the economic success of some nations.

  • Yet, many nations with vast stocks of natural resources are poor.


Factors associated with economic growth

Factors Associated with Economic Growth

Lesson 3 Activity 3.1


Activity 3 1 factors associated with economic growth

Activity 3.1Factors Associated with Economic Growth

  • Private Property Rights

    Question A: Would you keep a savings account or want to own a farm in a nation that expropriated savings and farmland every few years?

  • Physical Capital Question B: What incentives might encourage the development of physical capital?

  • Human Capital

  • Question C: What incentives could a nation provide to encourage the development of human capital?


Activity 3 1 factors associated with economic growth1

Activity 3.1Factors Associated with Economic Growth

  • Investment

    Question D: What incentives might encourage people to save and invest?

  • Infrastructure

    Question E: How is infrastructure similar to investment?


Be a planet planner

Be a Planet Planner

Lesson 3 Activity 3.2


Activity 3 2 be a planet planner

Activity 3.2Be A Planet Planner

  • The Spanish and the English had much in common. Both were powerful European colonial powers. But the results of colonial development led to different outcomes in North and South America. Why?


Be a planet planner1

Be A Planet Planner

  • You have just been appointed by Dr. Julie Verne to the United Nations Intergalactic Development Administration (UNIDA) Task Force for Planet Z93.

  • Your job is to advise Dr. Verne on Z93 development plans by applying two rules:

    1. People respond to incentives in predictable ways. Rewarding people for their work, for example, encourages them to be productive.

    2. People create economic systems that influence individual choices and incentives. In order for an economy to grow, its rules must include a system of incentives that encourages people to produce.


English development

English Development

  • England by the 17th century had transferred some power from the king to the parliament. Individual property rights were better defined and enforced.

    • The Pilgrims experimented with common land ownership but nearly starved.

    • In 1623, they replaced group land ownership with individual ownership.

  • “This had very good success for it made all hands very industrious, so as much more corn was planted than otherwise would have been by any means the Governor or any other could use.”

    • William Bradford

    • Of Plymouth Plantation, 1620-1647


Spanish development

Spanish Development

  • Spain in the 16th century was an absolute monarchy. Individual property rights were not well defined and enforced.

  • The plan for development was to seek gold and riches - - a transfer of wealth, not expansion.


Questions for discussion

Questions for Discussion

Questions for Discussion

  • How did the political institutions differ between Spain and England?

  • Describe ways in which Spain influenced the economic development of South and Central America?

  • Describe ways in which the English developed the eastern coast of North America?

    Policy Recommendations

  • Who should be allowed to own property in Z93? Individuals? Government? Why?


  • Login