CHAPTER REVIEW

KEY CONCEPTS

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.

Question

catching-up growth
cutting-edge growth
marginal product of capital
steady state
conditional convergence
non-rivalrous
in a model of economic growth, a situtation in which the capital stock is neither increasing nor decreasing.
growth due to capital accumulation.
the tendency—among countries with similar steady state levels of output— for poorer countries to grow faster than richer countries and thus for poor and rich countries to converge in income.
the increase in output caused by the addition of one more unit of capital. The marginal product of capital diminishes as more and more capital is added.
growth due to new ideas.
when one person’s use of the good does not reduce the ability of another person to use the same good, the good is nonrival.
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