Human & Technology
United States
What happens when productivity increases?
GDP Rises
What two countries are the most populous in Asia?
India & China
What is an example of technology, science & growth?
Engineering
What observation suggests that 'capital tends to flow to wealthier nations.'
The Lucas Paradox
Why is trade more important for growth?
It creates more competition &innovation
What is human capitL
The set of skills and abilities that an individual brings to their work/labor market.
After WW2, these two nations experienced rapid economic growth due to capital investment and education.
Japan & Germany
What is the key factor in long-term economic growth?
Investment in education and technology
Where does human capital stem from? (4 possible answers)
Eucation, training, experience, or talent
What is the population growth rate in steady-state equilibrium?
When capital and labor grow at the same rate
Lowering tariffs and liberalizing international trade coincides with......
Opening an economy to foreign capital flows
What is the human capital theory? (hint:? = ? = ? = ?)
Increased education = Increased human capital = Higher productivity/wages = Higher national output
What is Steady State-Equilibrium?
When capital, labor, and output all grow at the same rate.
What is the Neoclassical Growth Model?
A framework for measuring how economies grow.