ECON 102 Lecture Notes - Lecture 24: Capital Accumulation, Human Capital, Poverty Threshold

• School: University of Illinois
• Department: Economics
• Course: ECON 102
• Professor: Isaac Di Ianni

Document Summary

Capital accumulation causes people to become more wealthier, workers are more productive. Property rights: discourages investment, if you have a lot of money that. But investment is risky, that you most likely won"t you don"t need to spend, you could invest it you"ll consume right now instead of investing in future and then losing it. Opportunities for education to spend more than investing down: not just about machines and tools, also about human, as you get more education, median earnings go up and capital (which includes education) unemployment goes down. Data about income analysis is positive analysis. Difference in average standard of living bw ppl in developed countries and developing countries (3rd world countries) Richest countries tend to be the most free: the more economically free countries tend to be the, distribution of income is unequal bc economic freedom in wealthier countries unequal. Poverty threshold = consider person who"s income is below threshold to be in poverty.