ECON 1BB3 Lecture Notes - Lecture 12: Free Trade, Human Capital Flight, Marginal Product
7 Dec 2013
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ECON 1BB3 Full Course Notes
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Why are norwegians better off than ethopians? chapter 7 ~ economic growth (why do some countries grow/richer faster than others) real per capita gdp. Productivity: the quantity of goods and services that a worker can produce for each hour of work: determinants of productivity, physical capital (buildings, machinery equipment, anything that"s used to produce other goods and services, infrastructure. [highways]: human capital (people learning things) ex. 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. 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. Y = output = expenditure = income. N = natural resources: two assumptions:
