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Unformatted text preview: -More and/or better workers can produce more-Capital-More and better equipment, tools, and factories allow producers to increase output, and better utilize labor-Land-Natural resources are not a necessary condition for economic growth because they may be acquired through trade-Technology-Technology: ways of combining resources to produce output. Technological advances allow the production of more out put from a given amount of resources. Productivity-Total Factor Productivity (TFP) is the ratio of the economys output to its stock of labor and capital-The greater the TRP, the greater the potential output from other resources Economic Growth = Growth of TFP + Growth of Resources Determinants of Productivity -Labor Quality-Education level, demographic change-Technological innovation-Other factors-Energy prices, manufacturing v service, financial market development...
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- Spring '07