ECN 204 Lecture Notes - Lecture 5: Diminishing Returns, Production Function, Human Capital
Document Summary
Readings: chapter 7 (please read the related topics from other introductory level of microeconomics textbooks for your own benefits). You have to make your own note from lecture. In this chapter, look for the answers to these questions: Fact 1: there are vast differences in living standards around the world. Fact 2: there is also great variation in growth rates across countries. Incomes and growth around the world: since growth rates vary, the country rankings can change over time, poor countries are not necessarily doomed to poverty forever e. g. , singapore, incomes were low in. 1960 and are quite high now: rich countries can"t take their status for granted: they may be overtaken by poorer but faster-growing countries. Productivity: recall one of the ten principles from chap. Natural resources per worker: natural resources (n): the inputs into production that nature provides, e. g. , land, mineral deposits, other things equal, more n allows a country to produce more y.
