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9 Cards in this Set
- Front
- Back
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Industrial Revolution
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the widespread use of power driven machinery and the economic and social changes that occurred in the first half of the 1800s
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Productivity
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What is produced per worker, or per hour worked
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Production Function
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The process of a firm turning economic inputs like labor, machinery, and raw materials into outputs like good and services used by customers
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Aggregate Production Function
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The process of an economy as a whole turning economic inputs like labor, machinery, and raw materials into outputs like goods and services used by consumers.
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Components of Aggregate Production Function
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GDP AS OUTPUT
Population Human Capital Physical Capital Technology GDP/PER CAPITA Human Capital per person (H/L) Physical capital per person (K/L) Technology per person |
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Physical capital
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The plant and equipment used by firms in production
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Technology
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All the ways in which existing machines produce more or higher quality, as well as producing different and altogether new products
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Capital Deepening
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When an economy has a higher average level of physical and/or human capital per person
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Convergence
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When economies with low per capita incomes are growing faster than economies with higher capital incomes
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