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.
Rule of 70 Labor productivity Productivity Physical capital Human capital Technological progress Aggregate production function Diminishing returns to physical capital Growth accounting Total factor productivity Research and development Infrastructure Convergence hypothesis Sustainable longrun economic growth | 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 the effect on 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 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 amount of output that can be produced with a given amount of factor inputs 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 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 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 an advance in the technical means of the production of goods and services an estimation of the contribution of each of the major factors (physical and human capital, labor, and technology) in the aggregate production function output per worker; also referred to as simply productivity manufactured resources, such as buildings and machines output per worker; a shortened form of the term labor productivity. the improvement in labor created by the education and knowledge embodied in the workforce spending to create new technologies and prepare them for practical use |
Rule of 70, p. 380
Labor productivity, p. 382
Productivity, p. 382
Physical capital, p. 383
Human capital, p. 383
Technological progress, p. 383
Aggregate production function, p. 384
Diminishing returns to physical capital, p. 384
Growth accounting, p. 386
Total factor productivity, p. 387
Research and development (R&D), p. 391
Infrastructure, p. 392
Convergence hypothesis, p. 397
Sustainable long-run economic growth, p. 400