Read the summary and the most important questions on Unit 1 The capitalist revolution

• 2 The Capitalist revolution

• Since when did the increases in average living standards become a permanent feature of economic life in a lot of countries? And what was it associated with?

  Since the 1700s and it was associated with the rise of capitalism

• Which aspects play a major role in capitalism?

  Private property, markets and firms

• What raised the amount of production in a day's work

  Advances in technology, specialization in products and tasks

• What did the capitalism revolution cause?

  Growing threats to our natural environment and unprecedented global economic inequalities

• To compare living standards we use GDP Per Capita, what is GDP?

  GDP (gross domestic product) is the total value of goods produced in a certain amount of time.

• 2.1 Income inequality

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• What is the measure of inequality in a country, called 90/10 ratio?

  You divide the average income of the richest 10% in a country by the average income of the poorest 10% of a country

• 2.2 Measuring income and living standards

• What is the measure to estimate the living standards?

  Total goods and services produced (GDP) divided by the country's population

• 2.2.1 Disposable income

• What is the disposable income of an individual?

  The amount of wages or salaries, profit, rent, interests and transfer payments from the government or from other received over a period of time, minus any transfers the individual made to others

• 2.2.2 Is our disposable income a good measure of our wellbeing?

• Why is income, as an influence on wellbeing, insufficient?

  Many aspects of our wellbeing are not related to what we can buy

• Give examples on aspects of our wellbeing that disposable income leaves out?

  Friendship, clean air, the amount of spare time, healthcare and eduction (when provided by the government), home cooked meals and childcare