Chapter 2 - Framework For Analysis

Question 1

2 specific things make a country richer

Answer 1

• ## accumulation of inputs into production and productivity with which those inputs are used

Question 2

Differences in productivity

Answer 2

• differences in tech: R&D, dissemination of knowledge
• efficiency: organisation of economy, institutions

Question 3

Proximate cause

Answer 3

An event that is immediately responsible for some observed result

Question 4

Ultimate cause

Answer 4

Something that affects an observed result through a chain of intermediate events

Question 5

Possible differences in output per worker

Answer 5

• differences due to facto accumulation
• differences due to productivity
• differences sure to both