Unit 1

• What is the main topic of Unit 1 in EC107?

  The Capitalist Revolution
• What does "stuff" refer to in the context of acquiring goods and services?

  Goods and Services
• What is the cost of producing one unit of the product in the example?

  £1 per unit
• If each customer values one unit at £5, what is the maximum willingness to pay?

  £5
• How many potential customers are there in the market example?

  400 potential customers
• What is the willingness to pay for the 400th nearest person?

  £1.01
• What is the marginal willingness to pay for a second unit?

  £0
• What is the first price to auction the product in the example?

  £5
• How is total profit calculated in the auction example?

  By creating pairs of buyers
• What is the total profit calculated from the auction example?

  £802
• How does the profit change when willingness to pay is £5 for everyone?

  Profit is much higher
• If I charge £4, how many units will I sell?

  101 units
• What is the total profit if I charge £3?

  £402
• What pattern emerges when charging different prices?

  Profit varies with price changes
• What does a price of £3 indicate about market efficiency?

  Sales are restricted, leading to inefficiency
• What assumption drives the conclusion about profitability and efficiency?

  Single price restriction
• What is the definition of GDP?

  Measure of total income and output
• What does 1990 USD ppp ensure in GDP comparisons?

  Like-for-like comparison across countries

  
• What does "hockey-stick" growth refer to?

  Large differences in GDP over time
• How did GDP per capita differ 1,000 years ago?

  Differences were small and stable
• What was the GDP per capita comparison between China, Italy, and Britain 1,000 years ago?

  China and Italy were twice as high

  
• How did GDP per capita change by 2020?

  Increased differences across countries
• What is the average income of the richest 10% in Singapore?

  $67,436
• What is the average income of the poorest 10% in Liberia?

  $17
• What does the 90/10 ratio indicate in Singapore?

  18.5
• What does the 90/10 ratio indicate in Liberia?

  58.5
• How does inequality across countries compare to within countries?

  Exceeds that within countries
• What explains the inequality across countries?

  Differences in technological change timing
• When did growth take-off occur in Britain?

  Around 1650
• When did growth take-off occur in Italy?

  Around 1800
• When did growth take-off occur in Japan?

  Around 1870
• When did growth take-off occur in India and China?

  Mid-1900s
• How did colonization affect living standards in India?

  Reduced living standards
• What was a consequence of colonial infrastructure development in India?

  Focused on exporting goods
• What was a consequence of colonial institutions in India?

  Focused on tax collection
• What is technology defined as in the context of the lecture?

  Process using inputs to produce output
• What will Part 2 of the lecture highlight?

  Features of the technological revolution
• What did sustained technological changes allow for?

  Increases in output and living standards
• What significant event coincided with the upward kink in the hockey stick in Britain?

  Remarkable scientific and technological advances
• How much greater is today's productivity of labor in producing light compared to ancestors?

  Half a million times greater