ECON 200 Lecture Notes - Lecture 28: Human Capital, Investment Goods
27
ECON 200 Full Course Notes
Verified Note
27 documents
Document Summary
Productivity is defined as output per worker: y/l. When a nation"s workers are very productive, real gdp is large and incomes are high. When productivity grows rapidly, so do living standards. Natural resources per worker n/l - inputs into production that nature provides land minerals etc. Physical capital per worker k/l - produced factor of production, tools machines factories used to produce good and services. Human capital per worker - knowledge and skills that workers acquire through education and experience. Technological knowledge - society"s understanding of the best ways to produce goods and services - things that advance and boost productivity. Technological knowledge refers to society"s understanding of how to produce goods and services. Human capital results from the effort people expend to acquire this knowledge (both important for productivity) If inflation was higher than expected, the lender made a lower real return than you wanted.
