CAS EC 102 Chapter 11.2: EC102Chapter11.2Notes
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CAS EC 102 Full Course Notes
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Ec102 - chapter 11. 2 notes - what determines how. Economic growth model- * explains growth rates in real gdp per capita over the long run. Labor productivity: is the quantity of goods and services that can be produced by one worker or by one hour of work. Recall that technological change is a change in the quantity of output firms can produce using a given quantity of inputs: better machinery and equipment. Increases in human capital physical capital is literally physical but human capital is the accumulated knowledge and skills that workers acquire from education and training or from their life experiences. As workers increase their human capital through education or on-the-job training, their productivity also increases: better means of organizing and managing production. A country"s standard of living will be higher the more capital workers have available on their jobs, the better the capital, the more human capital workers have, and the better job managers do in organizing production.
