Term
| Sources of technological change |
|
Definition
1 better machinery and equipment.
2 increase in human capital
3 better means of organizing and managing production. |
|
|
Term
| Per worker production function |
|
Definition
| relationship between real gdp per hour worked and capital per hour worked. |
|
|
Term
| Adding more capital leads to? |
|
Definition
|
|
Term
| The key to sustaining economic growth |
|
Definition
|
|
Term
|
Definition
| developed by paul romer, an economist at Stanford University, to provide a better explanation of the sources of productivity change. |
|
|
Term
| Romer argues that the accumulation of (blank) is a key determinant of economic growth |
|
Definition
|
|
Term
| Knowledge is subject to what kind of returns? |
|
Definition
| Increasing, because knowledge is shared with everyone once it is discovered. |
|
|
Term
| What Gov't policies can increase the accumulation of knowledge capital |
|
Definition
1 protecting intellectual property with patents and copyright
2 Subsidizing research and development
3 Subsidizing education |
|
|
Term
|
Definition
| Created by Joseph Schrumpter. New products and markets force out the old for continuous improvement. Entrepreneurs are the key |
|
|
Term
| Economic Growth in the U.S through 1800-1972 |
|
Definition
1800-1900 industrial revolution + new tech (steam engine, telegraph, railroad)
1900-1949 corporations started doing more R&D, corporations started funding schools
1950-1972 National Science Foundation goal is to support university researchers |
|
|
Term
| Why the slowdown from 1973-1994 |
|
Definition
1 focus on services so hard to measure
2 hard to account for improvement in health and environment
3 education deterioration |
|
|
Term
| What caused growth from 1995-2008 |
|
Definition
| The new economy based on information technology |
|
|
Term
|
Definition
| Poor countries should grow economically faster than the rich |
|
|
Term
| Why don't all low income countries experience significant growth? |
|
Definition
1 failure to enforce laws (property rights and the rule of law)
2 Wars and Revolutions
3 Poor public education and health
4 Low rates of saving and investment |
|
|
Term
| Benefits of globalization |
|
Definition
| Both foreign direct investment and foreign portfolio investment |
|
|
Term
| Foreign Direct Investment |
|
Definition
| building or purchasing factories |
|
|
Term
| Foreign Portfolio Investment |
|
Definition
| purchasing stocks and bonds belonging to other countries |
|
|
Term
| How can Gov't Enhance growth |
|
Definition
1 Enhancing property rights and the rule of law
2 Improving health and education
3 Policies that promote technological change
4 Polices that promote savings and investment |
|
|
