ECON 001B Lecture Notes - Lecture 14: Moe Williams, Human Capital, Production Function
Document Summary
Econ 001b what determines the long-run rate of growth labor productivity. Growth is driven by increasing in labor productivity. Increases in gdp per person, increases because average worker can produce more over time. Real gdp per person is different than real gdp per capita. Two factors is capital per hour worked and level of technology *** (level of) technology could be quality of machine, how we do things how we produce (ex. changing managers) produce more with less or same amount capital per hour worked. Capital stock - total amount in economy. Capital is key to determine labor productivity. Capital alone will not lead to economic growth clicker: economic growth refers to percent change in real gdp per capita technological change. Produce more out of same amount of resources. Quality of capital stock better machinery and equipment. Increases in human capital education or training. Better means or organizing and managing production ex. changing layout for a more effective setting.
