1、Unit EightText:Economic Growth（经济增长）1.Key words2.Definition of economic growth3.The growth process:from agriculture to industry4.The sources of economic growth5.Translate the following into Chinese6.Questionseconomic growthIndustrial Revolutionrural areasbasic subsistence goodstechnical changecapita
2、l accumulationagrarian societysoft drinkaggregate production functionphysical or human capitaldiminishing returnsagricultural productivityon-the-job trainingsemi-conductor technologycapital-saving innovationpersonnel management techniquesEconomic growth occurs when an economy experiences an increase
3、 in total output.Economic growth occurs either when(1)society acquires more resources,or(2)society discovers ways of using available resources more efficiently.For economic growth to increase living standards,the rate of growth must exceed the rate of population increase.Thus,some economists define
4、economic growth as an increase in real GDP per capita.3.1 From agriculture to industry:the Industrial Revolution3.2 Growth in an industrial societyBefore the Industrial Revolution in Great Britain,every society in the world was agrarian.Towns and cities existed here and there,but almost everyone liv
5、ed in rural areas.People spent most of their time producing food and other basic subsistence goods.Beginning in England around 1750,technical change and capital accumulation increased productivity dramatically in two very important industries:agriculture and textiles.The British turned from agricult
6、ural production to industrial production.Growth meant new products,more output,and wider choice.The process of economic growth in an industrial society such as the United States is more complex.Technological change,innovation,and capital production(calculators,computers,and software)have increased p
7、roductivity.If a diner spends less on accounting,its sandwiches will cost less.Sandwich buyers thus may go to see another movie or have another soda.The entertainment and soft drink sectors expand,and so on.That is economic growth.4.1 An increase in labor supply4.2 Increases in physical capital4.3 I
8、ncreases in human capital4.4 Increases in productivityAn increasing labor supply can generate more output.Whether output per capita rises when the labor supply increases is another matter.If the capital stock remains fixed while labor increases,it is likely that the new labor will be less productive
9、 than the old labor.This phenomenon is called diminishing returns.Diminishing returns can also occur if a nations capital stock grows more slowly than its work force.Capital enhances workers productivity.An increase in the stock of capital can also increase output,even if it is not accompanied by an
10、 increase in the labor force.Physical capital both enhances the productivity of labor and provides valuable services directly.4.3.1 Roles of increases in human capital4.3.2 Ways of increases in human capitalInvestment in human capital is an important source of economic growth.People in good health a
11、re more productive than people in poor health.People with skills are more productive than people without them.Individuals can invest in themselves by going to college or vocational training programs.Firms can invest in human capital through on-the-job training.The government invests in human capital
12、 with programs to improve health,to underwrite schooling,and to provide job training.4.4.1 Technological change4.4.2 Other advances in knowledge4.4.3 Economies of scaleTechnological change affects productivity in two stages.First,there is an advance in knowledge,or an invention.But knowledge by itse
13、lf does nothing unless it is used.When new knowledge is used to produce a new product or to produce an existing product more efficiently,there is innovation.Technological change cannot be measured directly.Over and above invention and innovation,advances in other kinds of knowledge can also improve
14、productivity.One important category of knowledge is what we might call“managerial knowledge”,such as trimming inventories,improved personnel management techniques,and accounting procedures,data management,which make production more efficient,reduce costs,and increase measured productivity.External e
15、conomies of scale are cost savings that result from increases in the size of industries.The economies that accompany growth in size may arise from a variety of causes.(1)However,the increase in real output that began in the Western world with the Industrial Revolution and continues today has been so
16、 sustained and so rapid that economists have given the period a special name:modern economic growth.(2)The process of economic growth in an industrial society such as the United States is more complex but follows the same steps we have just described for growth in an agrarian society.(3)With land in
17、 strictly limited supply,the production possibility frontier could be pushed out only so far as population increased.(4)It is precisely this yield in the form of future valuable services that provides both private and public investors with the incentive to devote resources to capital production.(5)C
18、omputer technology has revolutionized the office,hybrid seeds have dramatically increased the productivity of land,and more efficient and powerful aircraft have made air travel routine and relatively inexpensive.(6)In addition,improved personnel management techniques,accounting procedures,data manag
19、ement,and the like can also make production more efficient,reduce costs,and increase measured productivity.(1)Discuss the sources of economic growth.(2)Explain how capital accumulation leads to economic growth.(3)What is the meaning of human capital?Explain how human capital contributes to economic growth.(4)Discuss the roles of technical change and innovation in modern economic growth.
