Chapter 10 Economic Growth

These flashcards cover key vocabulary and definitions related to economic growth, its components, and the factors influencing it.

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.

Production Function

A mathematical representation that describes the relationship between inputs used in production and the output generated.

GDP (Gross Domestic Product)

The total value of all goods and services produced within a country in a specific period, usually a year.

Human Capital

The skills, knowledge, and experience possessed by an individual or population that contribute to economic productivity.

Physical Capital

Tangible assets such as tools, machinery, and buildings used in the production of goods and services.

Labour

The total hours of work performed by individuals in an economy.

Technological Progress

The overall improvements in techniques and methods used in production processes that enhance output or efficiency.

Investment

The allocation of resources, usually money, to create or improve productive capacity.

Catch-up Growth

Rapid economic growth experienced by poorer countries that begin to adopt technologies available to richer countries.

Diminishing Returns

The decrease in incremental output as an additional unit of input (like capital) is added while holding other inputs constant.

Property Rights

Legal rights to possess, use, and dispose of assets, which are essential for economic development.

Government Stability

The degree to which a government is consistent and predictable, which encourages economic investment.

Efficient Regulation

Well-designed rules and standards that protect consumers and promote fair competition without imposing unnecessary burdens.

Foreign Investment

Investment by individuals, firms, or governments in financial assets or ventures in another country.

GDP Per Capita

The GDP divided by the population, giving an average economic output per person.