Friday, January 15, 2010

AP Economics: Analysis Results, Ch. 15 Mult. Choice Test

Ch. 15 Mult. Choice Test
Number of Grades 19
Range of Grades (80% - 100%)
Mean 93.5%
Median 94%
Mode 94%
Grade Distribution by Grouping

0 - 9
10 - 19
20 - 29
30 - 39
40 - 49
50 - 59
60 - 69
70 - 79
80 - 89 (3)
90 - 99 (15)
100+ (1)
Grade Distribution of each Grade

80 (1)
84 (1)
86 (1)
90 (1)
92 (1)
94 (5)
96 (5)
98 (3)
100 (1)

WH II Honors: 15 January 2010


Today as scheduled we have the Ch. 12 Test. Put your name on the Test. You may write on the Test. If you finish early, you may take out non-History material while you wait.

Ch. 13 Mass Society and Democracy 1870-1914

European Population Growth and Relocation, 1820-1900

Crossword Puzzle

Section 1 The Growth of Industrial Prosperity

Media Library

Section 2 The Emergence of Mass Society

Media Library

By the end of the nineteenth century, a mass society emerged in which the concerns of the majority of the population—the lower classes—were central. Many people moved to the cities which grew faster because of improvements in public health and sanitation. Despite crowded urban conditions, most people after 1871 enjoyed an improved standard of living. Europe's elite now included both aristocrats and a wealthy upper middle class. The middle class expanded to include a wide range of professions. The middle class served as a model of family life and proper social etiquette. Many women now found jobs as low-paid white-collar workers. Feminists began to demand equal rights and full citizenship, including the right to vote. Most Western governments began to set up primary schools to train children for jobs in industry. Society became more literate and enjoyed new mass leisure activities.

Main Ideas
A varied middle class in Victorian Britain believed in the principles of hard work and good conduct.

New opportunities for women and the working class improved their lives.

Key Terms



The New Urban Environment

Reading Check


Why did cities grow so quickly in the nineteenth century?

Social Structure of Mass Society

The New Elite

The Middle Classes

The Working Classes

Reading Check


Name the major groups in the social structure of the nineteenth century.

The Experiences of Women

New Job Opportunities

Marriage and the Family

The Movement for Women's Rights

In Britain, as elsewhere, women struggled against strong opposition for the right to vote. Women themselves were divided on the issue. Some women opposed suffrage altogether. Queen Victoria, for example, called the suffrage struggle “mad, wicked folly.” Even women in favor of suffrage disagreed about how best to achieve it.

Suffragists Revolt

By the early 1900s, Emmeline Pankhurst, a leading suffragist, had become convinced that only aggressive tactics would bring victory. Pankhurst and other radical suffragists interrupted speakers in Parliament, shouting, “Votes for women!” until they were carried away. They collected petitions and organized huge public demonstrations. When mass meetings and other peaceful efforts brought no results, some women turned to more drastic, violent protest. They smashed windows or even burned buildings. Pankhurst justified such tactics as necessary to achieve victory. “There is something that governments care far more for than human life,” she declared, “and that is the security of property, so it is through property that we shall strike the enemy.” As you have read, some suffragists went on hunger strikes, risking their lives to achieve their goals.

Vocabulary Builder

drastic—(dras tik) adj. severe, harsh, extreme

Victory at Last

Even middle-class women who disapproved of such radical and violent actions increasingly demanded votes for women. Still, Parliament refused to grant women’s suffrage. Not until 1918 did Parliament finally grant suffrage to women over age 30. Younger women did not win the right to vote for another decade.

Reading Check


What was the basic aim of the suffragists?

Universal Education

Reading Check

Why did states make a commitment to provide public education?

New Forms of Leisure

Reading Check


How did innovations in transportation change leisure activities during the Second Industrial Revolution?

Section 3 The National State and Democracy

Media Library

By the late nineteenth century, progress had been made toward establishing constitutions, parliaments, and individual liberties in the major European states. In practice, however, the degree of democracy varied. Political democracy expanded in Great Britain and France, while regional conflicts in Italy produced weak and corrupt governments, and an anti-democratic old order remained entrenched in central and eastern Europe. In Russia, working-class unrest led to “Bloody Sunday” and a mass strike of workers in 1905. After the American Civil War, slavery was abolished and African Americans were granted citizenship. American cities grew, and unions campaigned for workers' rights. The United States also gained several offshore possessions. In foreign policy, European powers drifted into two opposing camps. Crises in the Balkans only heightened tensions between the two camps.

Main Ideas

Key Terms

People to Identify

Western Europe and Political Democracy

Great Britain


A series of political reforms during the 1800s and early 1900s transformed Great Britain from a monarchy and aristocracy into a democracy. While some British politicians opposed the reforms, most sided in favor of reforming Parliament to make it more representative of the nation’s growing industrial population.

“No doubt, at that very early period, the House of Commons did represent the people of England but . . . the House of Commons, as it presently subsists, does not represent the people of England. . . . The people called loudly for reform, saying that whatever good existed in the constitution of this House—whatever confidence was placed in it by the people, was completely gone.”

—Lord John Russell, March 1, 1831


One day a wealthy Englishman named Charles Egremont boasted to strangers that Victoria, the queen of England, “reigns over the greatest nation that ever existed.”

“Which nation?” asks one of the strangers, “for she reigns over two. . . . Two nations; between whom there is no [communication] and no sympathy; who are as ignorant of each other’s habits, thoughts, and feelings, as if they were . . . inhabitants of different planets.”

What are these “two nations,” Egremont asks. “The Rich and the Poor ,” the stranger replies.

—Benjamin Disraeli, Sybil

In the 1800s, Benjamin Disraeli and other political leaders slowly worked to bridge Britain’s “two nations” and extend democratic rights. Unlike some of its neighbors in Europe, Britain generally achieved change through reform rather than revolution.


In 1815, Britain was a constitutional monarchy with a parliament and two political parties. Still, it was far from democratic. Although members of the House of Commons were elected, less than five percent of the people had the right to vote. Wealthy nobles and squires, or country landowners, dominated politics and heavily influenced voters. In addition, the House of Lords—made up of hereditary nobles and high-ranking clergy—could veto any bill passed by the House of Commons.

Reformers Press for Change

Long-standing laws kept many people from voting. Catholics and non-Anglican Protestants, for example, could not vote or serve in Parliament. In the 1820s, reformers pushed to end religious restrictions. After fierce debate, Parliament finally granted Catholics and non-Anglican Protestants equal political rights.

An even greater battle soon erupted over making Parliament more representative. During the Industrial Revolution, centers of population shifted. Some rural towns lost so many people that they had few or no voters. Yet local landowners in these rotten boroughs still sent members to Parliament. At the same time, populous new industrial cities like Manchester and Birmingham had no seats allocated in Parliament because they had not existed as population centers in earlier times.

Vocabulary Builder

allocate—(al oh kayt) vt. to distribute according to a plan

Reform Act of 1832

By 1830, Whigs and Tories were battling over a bill to reform Parliament. The Whig Party largely represented middle-class and business interests. The Tory Party spoke for nobles, land-owners, and others whose interests and income were rooted in agriculture. In the streets, supporters of reform chanted, “The Bill, the whole Bill, and nothing but the Bill!” Their shouts seemed to echo the cries of revolutionaries on the continent.

Parliament finally passed the Great Reform Act in 1832. It redistributed seats in the House of Commons, giving representation to large towns and cities and eliminating rotten boroughs. It also enlarged the electorate, the body of people allowed to vote, by granting suffrage to more men. The Act did, however, keep a property requirement for voting.

The Reform Act of 1832 did not bring full democracy, but it did give a greater political voice to middle-class men. Landowning nobles, however, remained a powerful force in the government and in the economy.

The Chartist Movement

The reform bill did not help rural or urban workers. Some of them demanded more radical change. In the 1830s, protesters known as Chartists drew up the People’s Charter. This petition demanded universal male suffrage, annual parliamentary elections, and salaries for members of Parliament. Another key demand was for a secret ballot, which would allow people to cast their votes without announcing them publicly.

Twice the Chartists presented petitions with over a million signatures to Parliament. Both petitions were ignored. In 1848, as revolutions swept Europe, the Chartists prepared a third petition and organized a march on Parliament. Fearing violence, the government moved to suppress the march. Soon after, the unsuccessful Chartist movement declined. In time, however, Parliament would pass most of the major reforms proposed by the Chartists.

From 1837 to 1901, the great symbol in British life was Queen Victoria. Her reign was the longest in British history. Although she exercised little real political power, she set the tone for what is now called the Victorian age.

The Victorian Web

Symbol of a Nation’s Values

As queen, Victoria came to embody the values of her age. These Victorian ideals included duty, thrift, honesty, hard work, and above all respectability. Victoria herself embraced a strict code of morals and manners. As a young woman, she married a German prince, Albert, and they raised a large family.

A Confident Age

Under Victoria, the British middle class—and growing numbers of the working class—felt great confidence in the future. That confidence grew as Britain expanded its already huge empire. Victoria, the empress of India and ruler of some 300 million subjects around the world, became a revered symbol of British might.


From Monarchy to Democracy in Britain

During her reign, Victoria witnessed growing agitation for social reform. The queen herself commented that the lower classes “earn their bread and riches so deservedly that they cannot and ought not to be kept back.” As the Victorian era went on, reformers continued the push toward greater social and economic justice.

In the 1860s, a new era dawned in British politics. The old political parties regrouped under new leadership. Benjamin Disraeli forged the Tories into the modern Conservative Party. The Whigs, led by William Gladstone, evolved into the Liberal Party. Between 1868 and 1880, as the majority in Parliament swung between the two parties, Gladstone and Disraeli alternated as prime minister. Both fought for important reforms.

Expanding Suffrage

Disraeli and the Conservative Party pushed through the Reform Bill of 1867. By giving the vote to many working-class men, the new law almost doubled the size of the electorate.

In the 1880s, it was the turn of Gladstone and the Liberal Party to extend suffrage. Their reforms gave the vote to farmworkers and most other men. By century’s end, almost-universal male suffrage, the secret ballot, and other Chartist ambitions had been achieved. Britain had truly transformed itself from a constitutional monarchy to a parliamentary democracy, a form of government in which the executive leaders (usually a prime minister and cabinet) are chosen by and responsible to the legislature (parliament), and are also members of it.
Limiting the Lords

In the early 1900s, many bills passed by the House of Commons met defeat in the House of Lords. In 1911, a Liberal government passed measures to restrict the power of the Lords, including their power to veto tax bills. The Lords resisted. Finally, the government threatened to create enough new lords to approve the law, and the Lords backed down. People hailed the change as a victory for democracy. In time, the House of Lords would become a largely ceremonial body with little power. The elected House of Commons would reign supreme.



The news sent shock waves through Paris. Napoleon III had surrendered to the Prussians and Prussian forces were now about to advance on Paris. Could the city survive? Georges Clemenceau (kleh mahn soh), a young French politician, rallied the people of Paris to defend their homeland:

“Citizens, must France destroy herself and disappear, or shall she resume her old place in the vanguard of nations? . . . Each of us knows his duty. We are children of the Revolution. Let us seek inspiration in the example of our forefathers in 1792, and like them we shall conquer. Vive la France! (Long Live France!)”


Focus Question

What democratic reforms were made in France during the Third Republic?

For four months, Paris resisted the German onslaught. But finally, in January 1871, the French government at Versailles was forced to accept Prussian surrender terms.

The Franco-Prussian War ended a long period of French domination of Europe that had begun under Louis XIV. Yet a Third Republic rose from the ashes of the Second Empire of Napoleon III. Economic growth, democratic reforms, and the fierce nationalism expressed by Clemenceau all played a part in shaping modern France.


Reading Check


What is the principle of ministerial responsiblity?

Central and Eastern Europe: The Old Order




Reading Check


What was the role of the Duma in the Russian government?

The United States and Canada (Is Canada a part of the United States?)

Aftermath of the Civil War

Economic differences, as well as the slavery issue, drove the Northern and Southern regions of the United States apart. The division reached a crisis in 1860 when Abraham Lincoln was elected president. Lincoln opposed extending slavery into new territories. Southerners feared that he would eventually abolish slavery altogether and that the federal government would infringe on their states’ rights.

North Versus South

Soon after Lincoln’s election, most southern states seceded, or withdrew, from the Union and formed the Confederate States of America. This action sparked the Civil War, which lasted from 1861 to 1865.

The South had fewer resources, fewer people, and less industry than the North. Still, Southerners fought fiercely to defend their cause. The Confederacy finally surrendered in 1865. The struggle cost more than 600,000 lives—the largest casualty figures of any American war.

Challenges for African Americans

During the war, Lincoln issued the Emancipation Proclamation, by which enslaved African Americans in the South were declared free. After the war, three amendments to the Constitution banned slavery throughout the country and granted political rights to African Americans. Under the Fifteenth Amendment, African American men won the right to vote.

Still, African Americans faced many restrictions. In the South, state laws imposed segregation, or legal separation of the races, in hospitals, schools, and other public places. Other state laws imposed conditions for voter eligibility that, despite the Fifteenth Amendment, prevented African Americans from voting.


By 1900, the United States had become the world's richest nation.


After the Civil War, the United States grew to lead the world in industrial and agricultural production. A special combination of factors made this possible including political stability, private property rights, a free enterprise system and an inexpensive supply of land and labor—supplied mostly by immigrants. Finally, a growing network of transportation and communications technologies aided businesses in transporting resources and finished products.

Business and Labor

By 1900, giant monopolies controlled whole industries. Scottish-born Andrew Carnegie built the nation’s largest steel company, while John D. Rockefeller’s Standard Oil Company dominated the world’s petroleum industry. Big business enjoyed tremendous profits.

Vocabulary Builder

dominate—(dahm un nayt) vt. to rule or control by superior power or influence

But the growing prosperity was not shared by all. In factories, wages were low and conditions were often brutal. To defend their interests, American workers organized labor unions such as the American Federation of Labor. Unions sought better wages, hours, and working conditions. Struggles with management sometimes erupted into violent confrontations. Slowly, however, workers made gains.

Populists and Progressives

In the economic hard times of the late 1800s, farmers also organized themselves to defend their interests. In the 1890s, they joined city workers to support the new Populist party. The Populists never became a major party, but their platform of reforms, such as an eight-hour workday, eventually became law.

By 1900, reformers known as Progressives also pressed for change. They sought laws to ban child labor, limit working hours, regulate monopolies, and give voters more power. Another major goal of the Progressives was obtaining voting rights for women. After a long struggle, American suffragists finally won the vote in 1920, when the Nineteenth Amendment went into effect.


For many Irish families fleeing hunger, Russian Jews escaping pogroms, or poor Italian farmers seeking economic opportunity, the answer was the same—America! A poem inscribed on the base of the Statue of Liberty expressed the welcome and promise of freedom that millions of immigrants dreamed of:

“Give me your tired, your poor,

Your huddled masses yearning to breathe free,

The wretched refuse of your teeming shore.

Send these, the homeless, tempest-tossed to me.

I lift my lamp beside the golden door.”

—Emma Lazarus, “The New Colossus”


Focus Question

How did the United States develop during the 1800s?

In the 1800s, the United States was a beacon of hope for many people. The American economy was growing rapidly, offering jobs to newcomers. The Constitution and Bill of Rights held out the hope of political and religious freedom. Not everyone shared in the prosperity or the ideals of democracy. Still, by the turn of the nineteenth century, important reforms were being made.
Expansion Abroad

U.S. Expansion, 1783–1898

From the earliest years of its history, the United States followed a policy of expansionism, or extending the nation’s boundaries. At first, the United States stretched only from the Atlantic coast to the Mississippi River. In 1803, President Thomas Jefferson bought the Louisiana territory from France. In one stroke, the Louisiana Purchase virtually doubled the size of the nation.

By 1846, the United States had expanded to include Florida, Oregon, and the Republic of Texas. The Mexican War (1846–1848) added California and the Southwest. With growing pride and confidence, Americans claimed that their nation was destined to spread across the entire continent, from sea to sea. This idea became known as Manifest Destiny. Some expansionists even hoped to absorb Canada and Mexico. In fact, the United States did go far afield. In 1867, it bought Alaska from Russia and in 1898 annexed the Hawaiian Islands.


Reading Check


Name the territories acquired by the United States in 1898.

International Rivalries

Reading Check


What countries formed the Triple Alliance and the Triple Entente?

Crisis in the Balkans

Reading Check


Why were the Serbs outraged when Austria-Hungary annexed Bosnia and Herzegovina?

Section 4 Toward the Modern Consciousness

Media Library

Scientific developments of the late-nineteenth and early-twentieth centuries changed the way people saw themselves and their world. Writers, artists, and musicians rebelled against traditional literary and artistic styles and created new ones that sometimes shocked critics with their audacity. Impressionism, cubism, and abstract art emerged. The scientific discoveries of Marie Curie and Albert Einstein, and the psychoanalysis of Sigmund Freud defied the orderly view of reason. Charles Darwin's description of life as a biological struggle for survival led to the Social Darwinism of Herbert Spencer and others. Extreme nationalist ideologies also borrowed from Social Darwinism. Threatening anti-Semitic activity in France, Germany, and Austria-Hungary led many Jews to emigrate to escape persecution. Many Jews immigrated to Palestine, where Zionists were trying to restore Jewish life.

A New Physics

Reading Check


How did Marie Curie's discovery change people's ideas about the atom?

Freud and Psychoanalysis

A thought provoking collection of Creative Quotations from Sigmund Freud (1856-1939); born on May 6. Austrian psychoanalyst; He was the first to develop the concept of the subconscious mind; founded psychoanalysis, 1895-1900.

Psychologist Sigmund Freud demonstrates what a boy will think in his conscious and unconscious when he sees a girl...on the beach. In a fantastically fun and educational way, the psychology legend explains and defines his terms, Id, Ego, and Superego.

This is a stop-motion video of a Sigmund Freud action figure dancing to Bloodhound Gang's "The Bad Touch."

Freudian Slippers: a brand new way of thinking about footwear. Brought to you by the Unemployed Philosophers Guild:

Sigmund Freud On The BBC - 1938 - Brief Audio Clip

Toward the end of his life, Freud was asked by the BBC to provide a brief statement about his decades-long career in psychoanalysis... here, in English, he offers a succinct overview... The "Freud Conflict and Culture" web site said this:

"On December 7, 1938, the British Broadcasting Corporation (BBC) came to Freud's Maresfield Gardens home in London to record a short message. By this time his cancer of the jaw was inoperable and incurable, making speech difficult and extremely painful. A photograph of Freud was taken as he prepared to read the statement you are listening to now. After his long struggle with cancer grew intolerable, Freud asked his physician for a fatal injection of morphine. He died on September 23, 1939."

Late Clips Of Sigmund Freud (1932, 1938)

In these brief clips, psychoanalysis founder Sigmund Freud (1856-1939) is first seen in Vienna in 1932 speaking with archeologist Emanuel Loewy, then in 1938 signing the Royal Society's charter book and lastly celebrating his 81st birthday... the latter clips were taken in London where Freud and his family were forced to move from Vienna following the 1938 Nazi Anschluss (he died in London a year later).

Reading Check


What is Freud's theory of the human unconscious?

Social Darwinism and Racism

Reading Check


What does the theory of social Darwinism state?

Anti-Semitism and Zionism


The most serious and divisive scandal began in 1894. A high-ranking army officer, Alfred Dreyfus, was accused of spying for Germany. However, at his military trial, neither Dreyfus nor his lawyer was allowed to see the evidence against him. The injustice was rooted in anti-Semitism. The military elite detested Dreyfus, the first Jewish person to reach such a high position in the army. Although Dreyfus proclaimed his innocence, he was convicted and condemned to life imprisonment on Devil’s Island, a desolate penal colony off the coast of South America. By 1896, new evidence pointed to another officer, Ferdinand Esterhazy, as the spy. Still, the army refused to grant Dreyfus a new trial.

Deep Divisions

The Dreyfus affair, as it was called, scarred French politics and society for decades. Royalists, ultranationalists, and Church officials charged Dreyfus supporters, or “Dreyfusards,” with undermining France. Paris echoed with cries of “Long live the army!” and “Death to traitors!” Dreyfusards, mostly liberals and republicans, upheld ideals of justice and equality in the face of massive public anger. In 1898, French novelist Émile Zola joined the battle. In an article headlined J’Accuse! (I Accuse!), he charged the army and government with suppressing the truth. As a result, Zola was convicted of libel, or the knowing publication of false and damaging statements. He fled into exile.

Slowly, though, the Dreyfusards made progress and eventually the evidence against Dreyfus was shown to be forged. In 1906, a French court finally cleared Dreyfus of all charges and restored his honors. That was a victory for justice, but the political scars of the Dreyfus affair took longer to heal.

Calls for a Jewish State

The Dreyfus case reflected the rise of anti-Semitism in Europe. The Enlightenment and the French Revolution had spread ideas about religious toleration. In Western Europe, some Jews had gained jobs in government, universities, and other areas of life. Others had achieved success in banking and business, but most struggled to survive in the ghettos of Eastern Europe or the slums of Western Europe.

By the late 1800s, however, anti-Semitism was again on the rise. Anti-Semites were often members of the lower middle class who felt insecure in their social and economic position. Steeped in the new nationalist fervor, they adopted an aggressive intolerance for outsiders and a violent hatred of Jews.

The Dreyfus case and the pogroms in Russia stirred Theodor Herzl (hurt sul), a Hungarian Jewish journalist living in France. He called for Jews to form their own separate state, where they would have rights that were otherwise denied to them in European countries. Herzl helped launch modern Zionism, a movement devoted to rebuilding a Jewish state in Palestine. Many Jews had kept this dream alive since the destruction of the temple in Jerusalem by the Romans. In 1897, Herzl organized the First Zionist Congress in Basel, Switzerland.

Reading Check


Why did Jews start to move to Palestine?

The Culture of Modernity





Social trends in the mid-1800s in France are readily apparent in the works of many of the impressionist artists. The work of Edgar Degas is a good example. In this activity you will learn about impressionism and about the contribution of Degas to a new style in painting and sculpture.

Edgar Degas


* Read the information on the Web site about Degas. Take notes as you read.
* Click on “Life” and read the information.
* Go back and click on “Artistic Styles.” Read the information.
* Click on two of Degas’s paintings and review his works.

Use the information you found to answer the following questions.



Reading Check


How did the Impressionists radically change the art of painting in the 1870s?


Self-check Quiz on Chapter

Vocabulary eFlashcards

Academic Vocabulary


Content Vocabulary

People, Places and Events

Psychoanalysis expert Timothy L. Hulsey, VCU psychology professor and dean of the honors college engages students and faculty in the Core Course and the psychology, MLC and English departments in a general forum on the relationship between Freudian theory and mainstream American psychological science. The conversation includes the impact of early experiences on adult behavior, the nature of memory and conceptions of the self and society: University of Richmond.

"In Memory of Sigmund Freud" by W.H. Auden (poetry reading):

Sigmund Freud's Hip Hop Cover Band

FREUD 01 World of Wonders

Pink Freud

Paperback Freud, "Kate"

Paul Warner recording "Freud" in the studio from the album "Deadly Waterparks". Footage produced by Bright Elephant Films.

Kutcher is surprised to see a photo of the novel KISSING FREUD on his Nikon camera.

HW email to
1. Study for the next Quiz/Test.

AP Economics: 15 January 2010

Prayer (alphabetical):

Today we have the scheduled Ch. 15 Multiple Choice Test. Put your name on the Scantron and the Test. You may write on the Test. If you finish early, you may take out non-Economics material while you wait.

We will pick up where we left off: Economic Growth Chapter 17

Chapter Overview

After discussing the classical model, the chapter presents material on the sources
of long-run economic growth (with particular emphasis on productivity growth)
and the importance of infrastructure. The chapter concludes with a section on innovation waves.

Chapter Outline
Aggregate Production Function, p. 455, 6:55

The Cobb-Douglas aggregate production function is explained along with constant returns to scale and diminishing productivity returns. The author discusses the role of technology on economic growth.

Product Markets, p. 456; Labor Markets, p. 456, 2:27

Mr. Clifford's (except for the spelling errors) 60 second explanation of the differences between a perfectly competitive product market and a perfectly competitive resource market. Notice that the firms both have a horizontal curve but in the product market it is demand and in the resource market it is supply.

Capital Markets: Saving and Investment, p. 458

Personal Savings and Investment are Important for the Economy, 6:44.

Dr. Demos Vardiabasis on the post WWII global economy

Implications for Economic Growth, p. 460

The unemployment rate held steady at 10 percent in December 2009. Paul Solman travels to Atlanta to gauge the hiring outlook in a down job market, 7:17.

Checkpoint: The Classical Model, p. 460
Sources of Long-Run Economic Growth, p. 460
Growth in the Labor Force, p. 461, 4:26

Changing Gender Roles at Home

The rapidly increasing number of women in the labor force has been both a cause and effect of the shift in gender roles in recent years. Women have had less time and energy to devote to their traditional role as homemaker. This has triggered a seismic shift in the division of labor in many households. From the series Our Families, Ourselves: Marriages and Families. Copyright 2007.

Productivity Is Important, p. 461
Sources of Productivity Growth, p. 462
Increasing the Capital to Labor Ratio, p. 462
Increasing the Quality of the Labor Force
Improvements in Technology
Modern Growth Theory
Checkpoint: Sources of Long-Run Economic Growth
Infrastructure and Economic Growth
Public Capital
Protection of Property Rights
Enforcement of Contracts
Stable Financial System
Economic Freedom Index
Checkpoint: Infrastructure and Economic Growth
The Changing Face of Innovation Waves

Ideas for Your Classroom Audience
The best illustration of the importance of the rate of economic growth is the rule
of 72 (or 70 in some texts). Use different growth rates and illustrate how long it
takes for a countrys GDP to double. Follow this up with Question 7 from the endof-
chapter Questions and Problems (the question asks whether a 1.4% growth
rate is so different from a 3.4% growth rate).

The text mentions Somalia as a particular country that has suffered due to its
severe political problems. Take a virtual �gfield trip�h to Somalia on this website
from BBC News. See the Web site at

Chapter Checkpoints
The Classical Model
Question: The classical model relies on competitive markets for labor, products,
and capital to keep the economy near full employment and output. The United
States has enjoyed nearly 3 decades of high employment, high growth, and low
inflation, interrupted by two short and mild recessions. Has the recent growth in
globalization and trade liberalization introduced more competition into labor, capital,
and product markets, making our economy look and act like classical economists

The point is to check that students can: relate their understanding of the classical
model to changes in the global economy.

Sources of Long-Run Economic Growth
Question: In 2006, Warren Buffett, the world�fs second richest individual, announced
that over the next few years he would be giving 85% of his wealth, over $30 billion,
to the Bill and Melinda Gates Foundation. The foundation focuses on grants to
developing nations, helping the poorest of the poor. What suggestions would you
give the Foundation to help these developing nations grow?

The point is to check that students can: relate the factors that affect long-run economic
growth to the activities of a foundation like the Gates Foundation.

Infrastructure and Economic Growth
Question: Imagine a country with a “failed government” that can no longer enforce
the law. Contracts are not upheld and lawlessness is the order of the day. How could
an economy operate and grow in this environment?

The point is to check that students can: understand how important the legal framework
is to economic growth.

Extended Examples in the Chapter
The Changing Face of Innovation Waves
Looking back to Schumpeter’s creative destruction, this section argues that the time
between waves of innovation is becoming shorter. It cites the work of William
Baumol, who contends that capitalism’s ability to produce a steady stream of new
ideas and processes has made capitalism the most efficient growth machine and the
best economic system for generating growth.
The sources cited for this section are “Catch the Wave: The Long Cycles of
Industrial Innovation are Becoming Shorter,” from The Economist, February 19,
1999, and The Free-Market Innovation Machine: Analyzing the Growth Miracle of
Capitalism, by William J. Baumol (Princeton: Princeton University Press, 2002).

Examples Used in the End-of-Chapter Questions
Questions 4 and 7 reference growth rates in different countries. Question 11 references
per capita income (or output). To learn more about growth rates and per
capita income in different countries, visit the CIA Factbook Web site at
For Further Analysis
Immigration: Good or Bad for Productivity?
The example provided in the student handout can be used as a small group exercise
or as an individual exercise. It is also suitable to use as the basis for a classroom
debate. The exercise expands on the chapter’s coverage of the sources of long-run
economic growth by exploring the issue of immigration. Students are directed to
read two articles about different “types” of workers and use them as a basis for analyzing
the impact of immigration.

See the paper on guest-worker programs by Mark Krikorian, executive
director of the Center for Immigration Studies for a presentation of this viewpoint.

Web-Based Exercise
This example requires students to compare two different measures of economic
freedom and to assess what aspects of economic freedom they feel are most important.
This assignment builds on the discussion on the text and also provides an
opportunity to discuss the effects of corruption on economic growth.
The Dimensions of Economic Freedom
Visit the Web site of the Fraser Institute to read its Economic Freedom of the World
report. Compare it with the Index of Economic Freedom (from the Heritage
Foundation and The Wall Street Journal) by answering the following:
1) Which are the top ten countries according to each source? (Web sites are and http://www.
2) What categories are included in each definition of freedom? (You may consult
the list of categories in the text for the Fraser Institute; for the Heritage
Foundation, see the Web site at

The challenge with regard to this material is how much students may take for
granted about their freedoms and the economy in which they live. Trying to give
them another perspective will help them understand the strengths of the U.S. economy
and the challenges of other countries.


Immigration: Good or Bad for Productivity?
Growth in the labor force is listed as a major source of long-run economic growth. But what
causes the labor force to grow? As noted in the text, immigration is causing the U.S. population to
rise faster than anyone thought. Is this good for productivity?
Read the article titled “Keeping Out the Wrong People: Tightened Visa Rules Are Slowing the Vital
Flow of Professionals into the U.S.” by Spencer E. Ante in Business Week (October, 2004, pp. 90–
94, available on the Web at:
Then read “The Worker Next Door,” by Barry R. Chiswick in The New York Times, June 3, 2006,
p. A23. This article is available on the Web at:
Based on the two articles, assess whether immigration is good or bad for U.S. productivity.

"Mankiw's 10 principles of economics, translated for the uninitiated", by Yoram Bauman, . Presented at the AAAS humor session, February 16, 2007. For the record, the talk contains two unattributed quotes ("9 out of 5" is adapted from a line attributed to Paul Samuelson---although apparently he said it about Wall Street indices, not macroeconomists---and "wrong about things" is paraphrased from P.J. O'Rourke's Eat the Rich) and, of course, the Einstein "simple" quote is an intentional misquote. The talk is based on a published article in Annals of Improbable Research (see ), which sponsored my talk and to which you should subscribe ( ). In the paper you can see the "constructive example" of how trade can make everyone worse off (or you can just wait 50 years to see what happens with climate change). More info and other clips on my website ( ), and please sign up for my email list.

Email HW to

1. Study for the Quizzes and Test in Ch. 16 while we move on to Ch. 17.