Mini Midterm (Ch. 25) Flashcards Preview

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Flashcards in Mini Midterm (Ch. 25) Deck (7)
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1

Productivity

the quantity of goods and services produced from each unit of labor input

2

Physical capital

the stock of equipment and structures that are used to produce goods and services

3

Human capital

the knowledge and skills that workers acquire through education, training, and experience

4

Natural resources

the inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits

5

Technological knowledge

society’s understanding of the best ways to produce goods and services

6

Diminishing returns

the property whereby the benefit from an extra unit of an input declines as the quantity of the input increases

7

Catch-up effect

the property whereby
countries that start off poor tend to grow more rapidly than countries that start off rich