Econ 201 Lecture 12: Long-run Economic Growth: Sources and Policies

These flashcards cover key vocabulary terms from Lecture 12 of Econ 201 on long-run economic growth.

Long-run Economic Growth

The sustained upward trend in a nation's output over time.

Diminishing Returns to Capital

The reduction in the incremental output gained from additional capital after a certain point.

Productivity Slowdown

A period during which the productivity growth rate declines.

Catch-up

The idea that poorer economies will grow at a faster rate than wealthier ones, allowing them to catch up in terms of GDP per capita.

Real GDP per Capita

The measure of a country's economic output that accounts for its number of people, adjusting for inflation.

High-Income Countries

Nations with a high gross national income per capita, which often have advanced infrastructure and high living standards.

Foreign Portfolio Investment

Investment made by individuals or firms in stocks and bonds issued in another country.

Foreign Direct Investment (FDI)

Investment made by a corporation in building or acquiring facilities in another country.

Rule of Law

The legal principle that law should govern a nation, as opposed to being governed by arbitrary decisions of individual government officials.

Human Capital

The skills, knowledge, and experience possessed by an individual, viewed in terms of their value or cost to an organization or country.