Question

For three of the four terms listed below, explain what the term means and how it matters in European economic history. The points indicate that you should give five minutes to each of these questions. In most cases, a two-three sentence answer is fine. (5 points each) (1) Comparative advantage (2) Siemens-Martin process (3) Eminent domain (4) Solow residual

Answer 1

1) Comparative advantage is the economics, describe the gains from trade for economic actors, which arise from differences in their factor endowments or technological progress. In an economic model, agents have a comparative advantage over others in producing a particular good if they can produce that good at a lower relative opportunity cost.

During industrial revolution european countries developed comparative advantadege over others due to better technology and cheaper production.This helped them to achieve higher gains and favourable trade conditions from trade with other countires and among themselves.

2)Siemens-martin Process is a steelmaking technique that accounted for the major part of all steel made in the world for most of the 20th century. William Siemens, in the 1860s, used the waste heat given off by the furnace and directed the fumes from the furnace through a brick checkerwork, he heated the brick to a high temperature, then used the same pathway for the introduction of air into the furnace; the preheated air materially increased the flame temperature.

The Siemens-Martin process replaced the Bessemer process and revolutionised the production process in 20th century europe. It also permits the melting and refining of large amounts of scrap steel, further lowering steel production costs and recycling an otherwise troublesome waste material.

3)ThePower to take private property for public use by a state, municipality,corporation authorized to exercise functions of public character, following the payment of just compensation to the owner of that property is known as Eminent Domain. This power allows the government to seize land to be used in public enterprises such as roads, schools, or utilities installations.

Eminent Domanin allowed European governments to easily acquire land for roads and government buildings and other facilities in their coutries as well as their colonies. This led to development of public utilities such as railways. In countries with unwritten constitutions, such as England, the supremacy of Parliament makes it theoretically possible for property to be taken without compensation, but in practice compensation is paid. The French and German systems, unlike Anglo-American law, require that it be paid in advance of the taking by the government.

4)The Solow residual is a measure of empirical productivity growth in an economy from year to year and decade to decade. It is taken as a measure of the rate of technological progress refers to that portion of growth in output which cannot be explained by growth in capital or labour.

Productivity growth during the British industrial revolution was slow despite the arrival of famous inventions. The steam technology had a relatively small and long-delayed impact on productivity growth when benchmarked against later technologies such as electricity. Even so, technological change including embodiment effects accounted entirely for the acceleration in labor productivity growth that allowed the economy to withstand rapid population growth without a decline in living standards.