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.
Positive marginal productivity of physical capital positive (MPK) Labour productivity Average Productivity of Labour (APL) Aggregate production function Per worker production function Diminishing returns to physical capital Growth accounting Productivity Sustainable long-run economic growth Infrastructure Convergence hypothesis Diminishing marginal productivity of (physical) capital (dim MPK) Human capital Technological progress Total factor productivity Research and development (R&D) Physical capital Rule of 70 | the improvement in labour created by the education and knowledge embodied in the workforce. output per worker; also referred to as Average Productivity of Labour (APL) or simply productivity. Increases in labour productivity are the only source of long-run economic growth. a relationship that shows how the aggregate real quantity of output is produced using the available factors of production (the inputs: labour, physical capital, and human capital) and technology [A and the function F(…)]. spending to create new technologies and prepare them for practical use. a mathematical formula that states that the time it takes real GDP per capita, or any other variable that grows gradually over time, to double is approximately 70 divided by that variable’s annual growth rate. physical capital, such as roads, power lines, ports, information networks, and other parts of an economy, that provides the underpinnings, or foundation, for economic activity. accounting that estimates the contribution of each major factor in the per worker production function to economic growth. in an aggregate production function when the amount of human capital per worker and the state of technology are held fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity; also referred to as diminishing marginal productivity of (physical) capital (dim MPK). output per worker or, in some cases, output per hour. Also referred to as labour productivity or simply productivity. output per worker; a shortened form of the term labour productivity. manufactured resources, such as buildings and machines. the amount by which productivity is increased as the result of a small increase in physical capital used. long-run growth that can continue in the face of the limited supply of natural resources and the impact of growth on the environment. the parameter A in the aggregate production function Y = A × F(K, L, H); a term that accounts for output that is not a result of the productive inputs. That is, it captures all inputs and technological features left out of the aggregate production function. an advance in the technical means of production of goods and services. in a per worker production function when, holding the amount of human capital per worker and the state of technology fixed, each successive increase in the amount of physical capital per worker leads to a smaller increase in productivity. a principle of economic growth that holds that international differences in real GDP per capita tend to narrow over time because countries that start with lower real GDP per capita tend to have higher growth rates. is a hypothetical function that shows how productivity (real GDP per worker) depends on the quantities of physical capital per worker and human capital per worker as well as the state of technology. |