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11 Cards in this Set
- Front
- Back
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Productivity
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the ratio of a specific measure of output, such as real GDP, to a specific measure of input, such as labor; in this case productivity measures real GDP per hour of labor
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Labor Productivity
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output per unit of labor; measured as real GDP divided by the hours of labor employed to produce the output
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Per-worker Production Function
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the relationship between the amount of capital per worker in the economy and average output per worker
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Capital Deepening
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an increase in the amount of capital per worker; one source of rising labor productivity
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Rules of the Game
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the formal and informal institutions that promote economic activity; the laws, customs, manners, conventions, and other institutional elements that determine transaction costs and thereby affect people's incentive to undertake production and exchange
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Industrial Market Countries
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economically advanced capitalist countries of Western Europe, North America, Australia, New Zealand, and Japan, plus the newly industrialized Asian economies of Taiwan, South Korea, Hong Kong and Singapore
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Developing Countries
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countries with a low living standard because of less human and physical capital per worker
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Basic Research
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the search for knowledge without regard to how that knowledge will be used
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Applied Research
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research that seeks answers to particular questions or to apply scientific discoveries to develop specific products
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Industrial Policy
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the view that government- using taxes, subsidies, and regulations-- should nurture the industries and technologies of the future, thereby giving these domestic industries an advantage over foreign competition
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Convergence
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a theory predicting that the standards of living in economies around the world will grow more similar over time, with poorer countries eventually catching up with richer ones
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