Chapter 17: Economic growth: Resources, technology, ideas and institutions Flashcards Preview

Economics 144 > Chapter 17: Economic growth: Resources, technology, ideas and institutions > Flashcards

Flashcards in Chapter 17: Economic growth: Resources, technology, ideas and institutions Deck (10)
Loading flashcards...
1
Q

Absolute Real Economic Growth

A

An increase in Real GDP from one period to the next.

2
Q

Per-Capita Real Economic Growth

A

An increase from one period to the next in per-capita Real GDP, which is Real GDP divided by population.

3
Q

Production Function

A

A function that specifies the relation between technology and the quantity of factor inputs to output or Real GDP.
Real GDP = T (L, K)

4
Q

Human Capital

A

The knowledge and skills a person acquires through education, training and experience.

5
Q

Institution

A

The rules of the game in a society or, more formally, the humanly devised constraints that shape human interaction; the rules and regulations, laws, customs and business practices of a country.

6
Q

3 Cunductive institutions to economic growth

A
  • Property rights structure
  • The legal system
  • Growth-promoting policies versus transfer-promoting policies.
7
Q

New growth theory & technology

A

Holds that technology is endogenous;

8
Q

Neoclassical growth theory & technology

A

Holds that technology is exogenous

9
Q

Endogenous

A

Part of the economic system, under our influence or control.

10
Q

Exogenous

A

Not part of the system. It is assumed to be given to us often because mystical through a process we do not understand.