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.
catching-up growth cutting-edge growth marginal product of capital steady state conditional convergence non-rivalrous | 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. 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. growth due to new ideas. growth due to capital accumulation. 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. in a model of economic growth, a situtation in which the capital stock is neither increasing nor decreasing. |