Capital accumulation and economic growth

Much of the discussion on capital accumulation and economic growth focuses on physical capital. But as we can imagine, human capital is also very important. As we can see from this graph (Picture included), international data on educational attainment shows a positive...

Laissez-Faire

“Laissez-Faire” is a French term that means the government keeps its hands off of certain activities. Why do you think the national government of the United States kept its hands off of big business by the end of the 1800’s? In other words, why did...

Opportunity cost and incentives.

Two of the main topics we studied in this economics class were opportunity cost and incentives. Choose one of the two topics below and respond to the questions. The humorist, P.J. O’Rourke, said (tongue in cheek) that if we want to stop drivers from tailgating we...

Final goods and services

In your own words, answer/address the following items: Why are only final goods and services included in the calculation of GDP?Explain the main differences between Real GDP and Nominal GDP.Explain at least two limitations of the Real GDP. Sample...