Chapter 2 - The U.S. Economy: A Global View Flashcards
Gross Domestic Product (GDP)
The total market value of all final goods and services produced within a nation’s border in a given time period.
per capita GDP
The dollar value of GDP divided by the total population; average GDP
Economic Growth
An increase in output (real GDP); an expansion of production possibilities.
Factors of Production
Resources inputs used to produce goods and services, such as land, labor, capital, entrepreneurship.
Human Capital
The knowledge and skills possessed by the workforce.
Capital-intensive
Production processes that use a high ratio of capital to labor inputs.
Productivity
Output per unit of input - for example, output per labor-hour.
High Productivity
Factor Mobility
Technological Advances
Outsourcing and Trade
Role of Government
Provide legal framework
Protecting the environment
Protecting consumers
Protecting labor
Production Possibilities
The alternative combination of final goods and services that could be produced in a given period with all available resources and technology.
Externalities
Cost (or benefit) of a market activity borne by a third party.
Monopoly
A firm that produces the entire market supply of a particular good or service.
