ECON 105 Chapter Notes - Chapter 9: Factors Of Production, Diminishing Returns, Investment Goods

• School: Simon Fraser University
• Department: Economics
• Course: ECON 105
• Professor: Davecox

Document Summary

Gdp: serves as a useful summary measure of a country"s economic progress over time. Growth rates: rule of 70, a mathematical formula that tells us how long it takes real gdp per capita, or any other variable that grows gradually over time to double: # of years for variable to double = 70 . *note that the rule of 70 can only be applied to a positive growth rate. If real gdp per capita grows at 1% per year it will take 70 years to double; 2% From 1899-2007 (108 years) the canadian real gdp per capita rose by 8x. Real output per capita: (y/pop) = (y/# of workers)(# of workers/pop)* The sources of long-run growth: the crucial importance of productivity, real gdp divided by the # of people working = productivity, 3 reasons for growth in productivity. 1: manufactured resources such as buildings and machines (1) make workers more productive.