Ch 8 Flashcards
1
Q
economic growth
A
increase real Gp % rate of growth
2
Q
Rule 70
A
years required to double GDP= 70÷ annual % rate of growth
3
Q
Institutional Structures of Growth
A
Strong property rights, parents and copyrights, efficient financial institutional, literacy and wide spread education, free trade, competitive market system.
4
Q
Efficient financial institutions
A
funnel money to people with ideas
5
Q
Determinants of growth
A
Supply factor, demand factor, Effeciency factor
6
Q
Labor and productivity equation
A
Real GDP = hours of work × labor productivity
7
Q
Network effects
A
as value increases the number of users increases
8
Q
Productivity slow down
A
slowdown in technology progress, high debt levels, over capacity, free internet app