Chapter 12 - Production and Growth

Externality

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

International trade

________ in goods and services can improve the economic well- being of a countrys citizens.

GDP

________ (Gross Domestic Product) per person shows that living standards vary widely from country to county.

Inward-oriented policies

policies that attempt to increase productivity and living standards within the country by avoiding interaction with the rest of the world.

productivity

An increase in ________ raises the living standards.

Brain drain

________- the emigration of many of the most highly educated workers to rich countries, where these workers can enjoy a higher standard of living.

Property Rights

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

Patent system

________- When a person or firm invents a new product, such as a new drug, the inventor can apply for a patent.

Productivity

________ is the determinant of growth in living standards.

Productivity

________- the number of goods and services produced from each unit of labor input (review)