Economics Notes Lesson 4.docx - Economics Notes Lesson 4 Chapter 10 Tuesday 10/1 Economic growth Economic growth measured by percentage change in

Economics Notes Lesson 4.docx - Economics Notes Lesson 4...

This preview shows page 1 - 3 out of 6 pages.

Economics Notes Lesson 4 Chapter 10 Tuesday 10/1 Economic growth Economic growth measured by percentage change in RGDP/capita Attempts to measure how the standard of living is changing over time Check out ourworldindata.org Amount of good and services must grow more than the population, there must be an increase in labor productivity In high income nations we expect to see the standard of living increase over time o This is called long-run economic growth Determined by increases to labor productivity Rule of 70 – an easy way to approximately calculate how many years it will take for something to double 70 / growth rate Labor productivity – the quantity of goods and services that can be produced by one hour of work Labor productivity = Q/L Q = quantity of output in a country L = quantity of hours worked Increases in Labor Productivity The same amount of worker -> a country can produce more o Changes to the production process (technology) Physical Capital – manufactured goods that are used to produce other goods and services The capital stock of a country is the total amount of physical capital available in a country Human capital – the accumulated knowledge and skills workers acquire from education, training, and their life experiences Rule of law and private property rights is and additional requirement for economic growth
Image of page 1

Subscribe to view the full document.

o this is referred to as institutions o solid institutions create an atmosphere needed to economics growth The Financial System
Image of page 2
Image of page 3
  • Fall '10
  • staff

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask bonus questions You can ask questions ( expire soon) You can ask questions (will expire )
Answers in as fast as 15 minutes