Class Notes (837,548)
Canada (510,312)
Economics (1,617)
ECON 1BB3 (535)
Lecture 12

lecture 12 ~ chapter 7 .docx
Premium

3 Pages
80 Views
Unlock Document

Department
Economics
Course
ECON 1BB3
Professor
Hannah Holmes
Semester
Fall

Description
Why are Norwegians better off than Ethopians? chapter 7 ~ economic growth (why do some countries grow/richer faster than others)  real per capita gdp - Liechtenstein  highest per capita gdp Productivity  Productivity: the quantity of goods and services that a worker can produce for each hour of work o Determinants of productivity 1. Physical capital (buildings, machinery equipment, anything that’s used to produce other goods and services, infrastructure [highways]) 2. Human capital (people learning things)  ex. How much time we actually spend reading the books in the library 3. Natural resources (renewable things  fish, trees crop, non- renewable  oil, minerals) 4. Technological knowledge (our knowledge of hot to combine inputs inorder to produce output)  ex. Books in a library  human capital & tech knowledge are related but aren’t the same - Possible to have a high technological knowledge but if no body in the economy spends time learning the technological knowledge, its not going to be useful - Ex. Which of the following is human capital  understanding how to use a company’s accounting software  Production function: shows how we combine inputs to produce output  F = function  Y = output = expenditure = income  A = technology  K = Physical capital  L = labour  H = human capital  N = natural resources o Two assumptions:  If a production function exhibits constant returns to scale, then doubling all inputs leads to a doubling of output (get exactly twice as much output)  multiplying all of the inputs by some factor at the same time and asking what happens to output when we do that  Production function with Increasing returns of scales, by doubling more of all of my inputs id get more than twice as much output  Production function with Decreasing returns of scale, double all of my inputs and get less than twice as much output  Assuming crts  any multiple times all of the inputs at the same time gets me exactly that multiple times the output  capital per worker  natural resources per worker  human capital per worker  if each worker can more capital, each worker will be more productive  if each worker has more resource
More Less

Related notes for ECON 1BB3

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit