ECON 200 Lecture Notes - Lecture 11: Diminishing Returns, Investment Goods, Physical Capital

• School: University of Arizona
• Department: Economics
• Course: ECON 200
• Professor: Chandini Sankaran

Document Summary

Drastically begins increase in 19th century and skyrockets from there. Us and other high income countries increase, others more flat. The average quantity of good and services produced per unit of labor input. 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. Martin: fisherman in u. s. ahmed: fisherman in bangladesh. 1 hour = 10 fish 1 hour = 1 fish. 8 hours a day = 8 hours a day=. The inputs into production that nature provides: Tools, machines, factories used to produce goods and services. The knowledge and skills that workers acquire through education and experience. Technological knowledge (a): society"s understanding of the best ways to produce goods and services. Technological progress does not only mean a faster computer, a higher- definition tv, or a smaller cell phone.