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Definition
| Increases in the stock of capital per worker |
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Definition
| More efficient ways of organizing economic affairs that allow an economy to increase output without increasing inputs. |
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Term
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Definition
| Gross domestic product per person adjusted for changes in prices. It is the usual measure of living standards across time and between countries. |
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Definition
| The percentage of change of a variable from one period to another. |
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Term
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Definition
| The percentage rate of change of a variable from one period to another. |
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Term
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Definition
| The process by which poorer countries close the gap with richer countries in terms of real GDP per capita. |
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Term
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Definition
| Income that is not consumed. |
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Term
| Principle of Diminishing Returns |
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Definition
| Suppose that output is produced with two or more inputs and that we increase one input while holding the other inputs fixed. Beyond some point-called the point of diminishing returns-output will increase at a decreasing rate. |
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Term
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Definition
| A method to determine the contribution to economic growth from increased capital, labor, and technological progress. |
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Term
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Definition
| Output produced per hour of work. |
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Term
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Definition
| The view that a firm will try to come up with new products and more efficient ways to produce products to earn monopoly profits. |
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Term
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Definition
| Modern theories of growth that try to explain the origins of technological progress. |
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