Ch 7 Economic Growth Flashcards
1
Q
Compound interest
A
the payment of interest not only on the original deposit but on all previously accumulated interest
2
Q
Average labor productivity
A
output per employed worker
3
Q
Human capital
A
an amalgam of factors such as education, training, experience, intelligence, energy, work habits, trustworthiness, and initiative that affects the value of a worker’s marginal product
4
Q
Diminishing returns to capital
A
if the amount of labor and other inputs employed is held constant, then the greater the amount of capital already in use, the less an additional unit of capital adds to production
5
Q
Entrepreneurs
A
people who create new economic enterprises
