Term
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Definition
| the quantity of goods and services produced from each unit of labor input. |
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Term
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Definition
| as measured by GDP per person, this varies substantially around the world |
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Term
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Definition
| The average income in the world’s richest countries is more than _____ that in the world’s poorest countries |
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Term
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Definition
| The relative positions of countries can change dramatically over time because _____ of real GDP vary substantially |
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Term
| produce goods and services |
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Definition
| The standard of living in an economy depends on the economy’s ability to... |
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Term
| physical capital, human capital, natural resources, and technological knowledge available to workers |
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Definition
| Productivity depends on the amounts of... |
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Term
| the economy's growth rate |
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Definition
| Government policies can try to influence _____ by encouraging saving and investment, encouraging investment from abroad, fostering education, promoting good health, maintaining property rights and political stability, allowing free trade, and promoting the research and development of new technologies |
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Term
| capital, productivity, and income |
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Definition
| Growth eventually slows down as what rises? (3 answers) |
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Term
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Definition
| the return to capital is especially high in poor countries because of... |
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Term
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Definition
| the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich |
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Term
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Definition
| the stock of equipment and structures used to produce goods and services |
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Term
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Definition
| the knowledge and skills that workers acquire through education, training, and experience |
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Term
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Definition
| the inputs into production that are provided by nature, such as land, rivers, and mineral deposits |
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Term
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Definition
society’s understanding of the best ways to
produce goods and services |
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Term
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Definition
| What is the equation for production (production function) |
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Term
| constant returns to scale |
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Definition
| This property implies that as all inputs are doubled, output will exactly double |
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Term
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Definition
| What is the equation for production with constant returns to scale? |
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Term
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Definition
| What is the equation for production to examine output per worker? |
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Term
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Definition
| the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases |
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Term
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Definition
| an organization that tries to encourage the flow of investment to poor countries |
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Term
| foreign portfolio investment |
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Definition
| occurs when a capital investment is financed with foreign money but operated by domestic residents |
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