Thẻ ghi nhớ: chaper 3: production and growth | Quizlet

productivity

–Quantity of goods and services

–Produced from each unit of labor input

PPF (Production Possibilities Frontier)

a curve that shows the maximum quantity of one good that can be produced for each possible quantity of another good produced

determinant of productivity

human capital per worker, physical capital per worker, and natural resources per worker, technical skills

physical capital

that be an input that is used to be an output

equipment + structure

-> fewer resources to produces goods and services for current consumption

accumulation

sự lích lũy

Law of Dimishing Marginal product

If you keep adding more of one factor of production (usually labor) while others (like capital, land, machines) stay the same, each new worker will add less and less extra output after a certain point.

limit to growth

The concept states that natural resources (land, minerals, energy, environment) are finite, so continuous growth in population, production, and consumption will eventually face limits.

dimishing returns

benefit from an extra unit of an input

ketchup effect

nước nghèo có thể tăng trưởng rất nhanh để "bắt kịp" nước giàu.

convergen

các nền kte nghèo có xu hướng tăng trưởng nhanh hơn các nền kinh tế giàu

boosting K

saving and invesment

invesment from abroad

boosting H

health and nutrition

education

boosting A (tech) and efficency

property right and political stability

free trade

research and development

GDP growth faster doesn't mean productivity increase faster

...

Real GDP per person

– Living standard

–Vary widely from country to country

Growth rate

– How rapidly real GDP per person grew in

the typical year

Why productivity is so important

–Key determinant of living standards

–Growth in productivity is the key

determinant of growth in living standards

–An economy’s income is the economy’s

output

–Foreign direct investment

• Capital investment that is owned and

operated by a foreign entity

–Foreign portfolio investment

• Investment financed with foreign money but

operated by domestic residents

Benefits from investment

–Some flow back to the foreign capital

owners

– Increase the economy’s stock of capital

– Higher productivity

– Higher wages

–State-of-the-art technologies