History’s Hockey Stick: Stagnant Income Before Sustained Growth

Economic Fluctuations as a Characteristic of Capitalism

For centuries, a particular region's economy was characterized by stagnant living standards and limited technological progress. Then, a series of institutional changes occurred: individuals gained the right to own productive resources (like tools and land), open markets were established where goods could be freely bought and sold, and new, privately-owned businesses began to emerge and compete. Following these changes, the region experienced an unprecedented and sustained increase in productivity and average income. Which of the following statements best analyzes the connection between the institutional changes and the economic outcome?

Evaluating Conditions for Capitalist Growth

Analyzing Economic Divergence

Arrange the following statements into a logical sequence that illustrates the causal chain from the establishment of a specific economic system to sustained economic growth.