Unformatted text preview: o Diminishing returns: as capital per worker is increased, output per worker increases as well, but at a slower rate. o Catch up effect: the property whereby countries that start off poor tend to grow more rapidly than countries that start off rich. o To increase savings and investments:-Investment from abroad-Education-Health and nutrition-Property rights and political stability-Free trade-Population growth...
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- Fall '08
- Macroeconomics, Capital accumulation, Physical Capital, better future standard