ECON 203 EXAM 2 (PAKHOTINA) EXAM WITH
CORRECT ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (83)
Economic growth Increases economic opportunities and generates
new wealth
Real GDP per capita growth rate [(value in current year - value in previous year) /
value in previous year] x 100
OR
nominal GDP growth rate - inflation rate -
population growth rate
GDP per capita in any year GDP yearA = GDP yearB x ((1 + (growth rate% /
100))^(yearA - year B)
, Rule of 70 Years until income doubles = (70 / growth rate%)
Productivity A measure of the output per worker and is what
drives growth
Output per worker = GDP per capita
Components of productivity -physical capital
-human capital
-technological improvements
-natural resources
Physical capital The stock of equipment and structures used to
produce goods and services
-ex: factories, machines, piplines, cell phone towers
-as physical capital increases, workers become
more productive
Human capital The set of skills, knowledge, experiencce, and talent
that determine the productivity of workers
-how to increase human capital: education, health
-increasing human capital results in workers
producing more with the same amount of capital
Technological improvements Innovations that cause the same inputs to produce
more outputs
-allows to produce more output with the same
amount of physical capital
-ex: internet invention, high yielding seeds
Natural resources Production inputs that come from earth
-renewable: trees, rivers
-nonrenewable: coal, oil
CORRECT ACTUAL QUESTIONS AND CORRECTLY
WELL DEFINED ANSWERS LATEST ALREADY
GRADED A+
Play your way to mastery with fun games
Match Blocks Charms NEW
Terms in this set (83)
Economic growth Increases economic opportunities and generates
new wealth
Real GDP per capita growth rate [(value in current year - value in previous year) /
value in previous year] x 100
OR
nominal GDP growth rate - inflation rate -
population growth rate
GDP per capita in any year GDP yearA = GDP yearB x ((1 + (growth rate% /
100))^(yearA - year B)
, Rule of 70 Years until income doubles = (70 / growth rate%)
Productivity A measure of the output per worker and is what
drives growth
Output per worker = GDP per capita
Components of productivity -physical capital
-human capital
-technological improvements
-natural resources
Physical capital The stock of equipment and structures used to
produce goods and services
-ex: factories, machines, piplines, cell phone towers
-as physical capital increases, workers become
more productive
Human capital The set of skills, knowledge, experiencce, and talent
that determine the productivity of workers
-how to increase human capital: education, health
-increasing human capital results in workers
producing more with the same amount of capital
Technological improvements Innovations that cause the same inputs to produce
more outputs
-allows to produce more output with the same
amount of physical capital
-ex: internet invention, high yielding seeds
Natural resources Production inputs that come from earth
-renewable: trees, rivers
-nonrenewable: coal, oil
