Match each of the terms on the left with its definition on the right. Click on the term first and then click on the matching definition. As you match them correctly they will move to the bottom of the activity.
economic growth compounding real GDP real GDP per capita Rule of 70 production function productivity investment in human capital capital- diminishing returns to capital catch- total factor productivity infrastructure | Each additional unit of capital provides a smaller increase in output than the previous unit of capital. Provides an estimate of the number of years for a value to double, and is calculated as 70 divided by the annual growth rate. Usually measured by the annual percentage change in real GDP, reflecting an improvement in the standard of living. The capital employed per worker. A higher ratio means higher labor productivity and, as a result, higher wages. The public capital of a nation, including transportation networks, power- Real GDP divided by population. Provides a rough estimate of a country’s standard of living. The ability of growth to build on previous growth. It allows variables such as income and GDP (as well as debt) to increase significantly over time. The portion of output produced that is not explained by the number of inputs used in production. How effectively inputs are converted into outputs. Labor productivity is the ratio of the output of goods and services to the labor hours devoted to the production of that output. Productivity and living standards are closely related. The total value of final goods and services produced in a country in a year measured using prices in a base year. Measures the output that is produced using various combinations of inputs and a fixed level of technology. Improvements to the labor force from investments in skills, knowledge, and the overall quality of workers and their productivity. Countries with smaller starting levels of capital experience larger benefits from increased capital, allowing these countries to grow faster than countries with abundant capital. |