Economie Politique - Unité 2

A set of flashcards covering key concepts from the Economics lecture notes focusing on technology, industrialization, and economic models.

What is the main explanation for long-term growth often referred to as?

The hockey stick growth.

Why did the Industrial Revolution occur in the 18th century in Great Britain?

Due to the combination of high labor costs and cheap local energy sources, not solely based on individual factors.

What are economic models?

Simplified representations of reality that help understand, analyze, and predict economic behaviors.

What role do private property rights play in capitalist institutions during the Industrial Revolution?

They incentivized business owners to innovate and reap the profits from their innovations.

What does the term 'creative destruction' refer to?

The process by which old technologies and firms that do not adapt are eliminated by new innovations.

What factor did Prof. Joel Mokyr identify as key to the technological revolution's permanence?

The feedback loop between those who know (the scholars) and those who do (the makers).

How did relative prices of inputs influence technological choices during the Industrial Revolution?

High wages relative to the price of coal prompted firms to seek labor-saving technologies.

Which technologies were prevalent before the Industrial Revolution?

Labor-intensive technologies that were costly compared to emerging energy-saving technologies.

What does the 'isocost line' represent in economic theory?

Combinations of inputs that yield the same cost of production.

In what way did markets contribute to industrial growth?

They allowed firms to specialize and efficiently acquire needed inputs.

What characterizes the relationship between knowledge and technology?

Technology advances science by creating better tools, and knowledge drives technological innovation.

Why was Great Britain the first country to experience the Industrial Revolution?

Due to higher wages compared to other countries and the availability of inexpensive coal.

What impact did the Enlightenment have on technological communication?

It facilitated connections between scholars and manufacturers, enabling knowledge transfer.

Who were some of the notable inventors or makers of the Industrial Revolution?

James Watt, John Whitehurst, and Richard Trevithick.

What is the significance of scientific diffusion during the Industrial Revolution?

It allowed for widespread sharing of knowledge, leading to innovations.

What shifts in prices relative to inputs lead to changes in technology choice?

A decrease in labor costs combined with an increase in energy prices can shift firms toward labor-saving technologies.