ECON 105 Chapter Notes - Chapter 7: Foreign Portfolio Investment, Diminishing Returns, Capital Accumulation

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

Document Summary

Topics cover: difference in living standards across countries, productivity and standard of living, diminishing returns to capital, public policy and economic growth, notice: differentiation of levels of income and rate of growth. The level of income per person is a good gauge of economic prosperity. (current economic condition) The rate of growth in income per person is a good gauge of economic progress. , workers produce more efficiently, output and income , Y = real gdp = quantity of output produced. Notice: a is non-rival, means it can easily be shared among many people, However, h is generally tied to the individuals who acquire it. Production function: relationship between the quantity of inputs used in production and the quantity of output produced. Y = output, l = quantity of labor, k = quantity of physical capital, H = quantity of human capital, n = quantity of natural resources, A reflects the available technology, and f( ) is a function.