ECO 121- Midterm Exam Guide - Comprehensive Notes for the exam ( 18 pages long!)
Document Summary
Incomes and growth around the world: there are vast differences in living standards around the world, there is also great variation in growth rates across countries. Productivity: the average quantity of g&s produced per unit of labor a. i. Y = real gdp = quantity ofl output produced a. ii. Productivity = y/l (output per worker: physical capital b. i. The stock of equipment and structures used to produce goods and services (k) b. ii. Increase in k/l = increase in y/l: human capital (h) c. i. The knowledge and skills workers acquire through education, training, and experience c. ii. H/l = the average worker"s human capital c. iii. Increase in h/l = increase in y/l: natural resources (n) d. i. The inputs into production that nature provides (land, mineral deposits) d. ii. Other things equal, more n = more y: technological knowledge e. i. Society"s understanding of the best ways to produce goods and services e. i. 1. e. i. 2. Not just a faster computer or higher definition television.
