Term
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Definition
| quantity of goods and services produced from each unit of labor input. |
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Term
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Definition
- total income earned by everyone
- total expenditure on output of goods and services
- (expenditures and income must be equal)
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Term
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Definition
| stock of equipment and structures that are used to produce goods and services. |
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Term
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Definition
| knowledge and skills that workers acquire through education, training and experience |
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Term
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Definition
| inputs into production of goods and services that are provided by nature |
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Term
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Definition
| society's understanding of best ways to produce goods and services. |
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Term
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Definition
| after one person uses it, everyone becomes aware of it |
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Term
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Definition
| known only by the company that discovers it |
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Term
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Definition
| property whereby the benefit from an extra unit of an input declines as quantity of input increases. |
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Term
| foreign direct investment |
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Definition
| capital investment that is owned and operated by foreign entity |
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Term
| foreign portfolio investment |
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Definition
| investment that is financed with foreign money but operated by domestic residents |
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Term
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Definition
| effect of one person's actions on well-being of a bystander |
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Term
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Definition
| emigration of may of most highly educated workers to rich countries, where these workers can enjoy higher standard of living. |
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Term
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Definition
| refers to ability of people to exercise authority over resources they own |
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Term
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Definition
| attempt to increase productivity and living standards within the country by avoiding interaction with the rest of the world |
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Term
| outward- oriented polices |
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Definition
| integrate poor countries into world economy |
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Term
| Ways to raise growth in living standards |
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Definition
1. Stretching natural resources
2. diluting capital stock
3. Promoting Technological progress |
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