Economic Growth & Productivity

A collection of vocabulary flashcards designed to help students learn key concepts related to economic growth and productivity.

Economic Growth

The increase in the market value of the goods and services produced by an economy over time.

Real GDP per Capita

A measure of the economic output that accounts for population; it represents the average economic productivity per person.

Labor Productivity

The amount of goods and services produced per hour of labor.

Human Capital

The knowledge, skills, and experience possessed by an individual, seen in terms of their value to an organization.

Physical Capital

The stock of equipment and structures that are used to produce goods and services.

Growth Rate

The measure of the increase in economic output or population over a specific period.

Technological Change

The process by which new technologies are developed and used to improve the production and efficiency of goods and services.

Employment-Population Ratio (EPR)

The ratio of the labor force to the total working-age population, often used to measure the ability of an economy to generate employment.

Catch-Up Growth

Rapid economic growth that allows a developing country to converge towards the income levels of developed countries.

Dependency Ratio

A ratio that compares the number of dependents (people younger than 15 or older than 64) to the working-age population (ages 15-64).

Diminishing Returns to Capital

A principle stating that as more units of a factor of production are added, holding other factors constant, the incremental increase in output will eventually decrease.

Foreign Direct Investment (FDI)

An investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring assets.

Economic Growth Tradeoff

The concept that achieving higher economic growth often requires sacrifices in other areas, such as current consumption or environmental goals.