Mankiw Principles Of Macroeconomics Ch 12 Production And Growth

Front 1

Physical capital

Back 1

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

Front 2

Productivity

Back 2

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

Front 3

The determinants of productivity (4)

Back 3

1. Physical capital per worker
2. Human capital per worker
3. Natural resources per worker
4. Technological knowledge

Front 4

Human capital

Back 4

the knowledge and skills that workers acquire through education, training, and experience

Front 5

Natural resources

Back 5

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

Front 6

Technological knowledge

Back 6

society's understanding of the best ways to produce goods and services

Front 7

Diminishing returns

Back 7

the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

Front 8

catch-up effect

Back 8

the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

Front 9

The saving and investment trade-off

Back 9

Because resources are scarce, devoting more resources to producing capital requires devoting fewer resources to producing goods and services for current consumption.

Front 10

Foreign direct investment

Back 10

A capital investment that is owned and operated by a foreign entity.