Eco Ch 8 Productivity and Growth

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Eco Ch 8 Productivity and Growth
2014-10-18 10:44:37
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  1. production
    A process that transforms resources into goods and services
  2. productivity
    The ratio of a specific measure of output, such as real GDP, to a specific measure of input, such as labor; in this case productivity measures real GDP per hour of labor
  3. labor productivity
    Output per unit of labor; measured as real GDP divided by the hours of labor employed to produce that output
  4. per-worker production
    The relationship between the amount of capital per worker in the economy and average output per worker
  5. capital deepening
    An increase in the amount of capital per worker; one source of rising labor productivity
  6. rules of the game
    The laws, customs, manners conventions, and other institutional elements that determine transaction costs and thereby affect people's incentive to undertake production and exchange
  7. industrial market economies
    Economically advanced capitalist countries of Western Europe, North America, Australia, New Zealand, and Japan, plus the newly industrialized Asian economies of Taiwan, South Korea, Hong Kong and Singapore
  8. developing countries
    Countries with a lower living standard because of less human and physical capital per worker
  9. basic research
    The search for knowledge without regard to how that knowledge will be used
  10. applied research
    Research that seeks answers to particular questions or to apply science discoveries to develop specific products
  11. industrial policy
    The view that government- using taxes, subsidies, and regulations- should nurture the industries and technologies of the future, thereby giving these domestic industries an advantage over foreign competition