Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
|
physical capital (K)
|
the stock of goods and services used to produce goods
|
|
|
Human capital (H)
|
Knowledge and skills used to produce goods
|
|
|
natural resources
|
inputs such as nature used to produce goods
renewable vs. non renewable |
|
|
The Production Function
|
y = a f (L K H N)
|
|
|
Diminishing returns
|
as capital stock rises, the extra output produced will fall
*bell shaped curve to the right* |
|
|
the catch up effect
|
a country that start off more poor tends to grow more rapidly when being compared to a rich country
*bell shaped curved to the right* |
