Economics 1022A/B Lecture Notes - Technological Change, Human Capital, Absolute Advantage
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The expansion of production possibilities- and increase in the standard of living-is called
Two key factors influence economic growth:
Technological change: the development of new goods and of better ways of producing
goods and services.
Capital accumulation: the growth of capital resources, which includes human capital.
The cost of economic growth
Economic growth is not free!
Gains from Trade
Comparative Advantage and Absolute Advantage
A person has an absolute advantage if that person is more productive than others.
Absolute advantage involves comparing productivities.
A person has a comparative advantage in