Chapter 7 - Economic Growth and Productivity

Natural resources

________ have historically played a considerably larger role in determining production.

Depreciation

The term ________ refers to a state that occurs when the value of an asset is reduced by war, age, or obsolescence.

forms of physical capital

All ________, that is, products that are used to produce other goods, are considered investment assets.

private enterprises

Individuals and ________ spend the majority of their money on investments, which is how an economy's physical capital is formed.

Governments

________ also play an essential role in facilitating high rates of private investment spending in an indirect manner.

Excessive government interference

________ can stifle economic progress even when governments are not corrupt.

Thomas Malthus

The English economist ________ used the fixed quantity of land in the globe as the foundation of a gloomy forecast about future productivity in his renowned book An Essay on the Principle of Population, published in 1798.

Long term economic growth

________ has been feasible in successful economies like the United States because of good laws, institutions that enforce those laws, and a stable political system that preserves those institutions.

production possibilities curve

The ________ depicts the various investment and consumer products combinations that Kyland can produce.