Chapter 25 - Production and Growth

Technological knowledge

________ is the actual content and quality of certain items, whereas human capital is the time spent reading it.

Externality

________: the effect of one persons actions on the well- being of a bystander.

Height

________ is reflected as an indicator of productivity- taller workers earn more.

Education

________ is an investment in human capital which has an opportunity cost.

Economic prosperity

________ depends on favorable political institutions.

Economic growth

________ can be fostered from the protection of property rights and promotion of political stability.

Brain drain

________: the emigration of many of the most highly educated workers to rich countries, where the workers enjoy a standard of living Health and Nutrition.

Productivity

________ creates outputs for the economy.

standard of living

Inwardly oriented policies attempt to increase productivity and the ________ by focusing domestically and cutting international communication.

Foreign investments

________ are a way for a countrys economy to grow.

Poor countries

________ tend to grow at faster rates than rich countries Investment from Abroad.

Property rights

________: the ability of people to exercise authority over the resources they own.

High standards of living

________ are correlated with a larger amount of outputs How Productivity Is Determined.

Natural resources

________: the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits.

international data

To understand production and growth, ________ on the GDP per person must be examined, as well as productivity and the link between it and the economic policies of a nation.

population growth

According to modern theories, ________ reduces GDP per worker because rapid growth in the number of workers forces the capital stock to be spread more thinly.

Physical capital

________: the stock of equipment and structures that are used to produce goods and services.

Technological knowledge

________: societys understanding of the best ways to produce goods and services.

Productivity

________ is determined by physical capital, human capital, natural resources, and technological knowledge.

Productivity

________: the quantity of goods and services produced from each unit of labor input.