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18 Cards in this Set
- Front
- Back
What are Factors of Production?
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Inputs used to produce goods and services (ie, how productivity is determined)
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What are the Factors of Production?
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Physical Capital
Human Capital Natural Resources Technological Knowleddge |
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What is Physical Capital?
(Factor of Production) |
the stock of equipment used to produce goods
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What is Human Capital?
(Factor of Production) |
the knowledge and skills workers acquire through education/training
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What are Natural Resources?
(Factor of Production) |
the inputs into production that are provided by nature
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What is Technological Knowledge?
(Factor of Production) |
Society's understanding of the best ways to produce goods
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What are some ways that Government can raise productivity/living standards?
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Encouraging: Saving, Foreign Investment Domestically, Education
Securing: property rights, political stability, Promoting: Free Trade, Research |
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What are Dminishing Returns?
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The property whereby the benefit from an extra unit of an input decines as the quantity of the input increases.
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What is the catch-up effect?
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the property whereby countries that start off poor grow more rapidly than those that start off rich.
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What are the kinds of Investment from abroad?
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Foreign Direct
and Foreign Portfolio |
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What is Foreign Direct Investment?
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Investment owned and operated by a foreign entity
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What is Foreign Portfolio Investment?
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Investments financed with foreign money but are operated by domestic residents
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What kind of investments are Investments financed with foreign money but are operated by domestic residents
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Foreign Portfolio Investments
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In the United States, each year of schooling raises a person's wage by what on average?
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10 percent
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What is "brain drain"?
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The emigration of highly educated workers from poor countries to richer countries.
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From 1959 to 1973 productivity grew at a rate of ___ percent per year.
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3.2 percent
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From 1973 to 1995 productivity grew by only ___ percent per year.
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1.5
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In what ways can population growth interact with other factors of production?
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-Stretching resources
-Diluting capital stock -Promoting technological progress |