Term
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Definition
the average quantity of g&s produced per unit of labor input.
Y/L(output per worker) |
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Term
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Definition
The stock of equipment and structures used to produce g&s
K/L=capital per worker |
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Term
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Definition
the knowledge and skills workers acquire through education, training, and experience.
H/L=the average worker's human capital |
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Term
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Definition
| the inputs into production that nature provides, e.g., land, mineral deposits |
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Term
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Definition
| society’s understanding of the best ways to produce g&s |
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Term
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Definition
a graph or equation showing the relation between output and inputs:
Y = A F(L, K, H, N) |
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Term
| Diminishing returns to capital |
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Definition
As K rises, the extra output from an additional
unit of K falls |
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Term
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Definition
| the property whereby poor countries tend to grow more rapidly than rich ones |
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Term
| foreign direct investment |
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Definition
| a capital investment (e.g., a factory) that is owned & operated by a foreign entity |
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Term
| Foreign portfolio investment |
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Definition
| a capital investment financed with foreign money but operated by domestic residents |
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