Econ 104 - Macroeconomic Analysis and Policy

Flashcards that cover key vocabulary and concepts from the lecture on macroeconomic analysis and productivity.

Standard of living

The level of wealth, comfort, and material goods available to a certain socioeconomic class or geographic area.

Productivity measurement

The ratio of a specific measure of output, such as real GDP, typically expressed as real GDP per hour of labor.

Per-Worker Production Function

A function showing the output per worker for various levels of capital, reflecting the law of diminishing marginal returns.

Diminishing marginal returns

The decrease in the incremental output gained from adding additional units of capital or labor.

Technological breakthrough

An innovation that significantly increases productivity and efficiency in production processes.

Human capital

The skills, experience, and education possessed by individuals that contribute to their productivity.

Industrial Policy

A government strategy aimed at promoting specific sectors or industries through subsidies, tax incentives, and regulations.

Simon Kuznets

An economist who claimed that technological change drives economic growth.

GDP per capita

The total economic output of a country divided by its population, indicating average productivity per resident.

Knowledge economy

An economy driven by the production and consumption of knowledge and information rather than just physical goods.

OPEC

Organization of the Petroleum Exporting Countries, which can influence oil prices and economic policies.

Economic growth

An increase in the production of goods and services in an economy over time.

Output per worker

The total output produced divided by the number of workers, indicating worker productivity.

Rules of the game

The legal, institutional, and social frameworks that govern economic activities.

Group of Seven (G-7)

A group of seven major advanced economies: Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.