Chapter 7 - Long-Run Economic Growth: Sources And Policies Flashcards
Foreign portfolio investment
The purchase by an individual or a firm of stocks or bonds issued in another country.
Patent
The exclusive right to produce a product for a period of 20 years from the date the patent is applied for.
Rule of law
The ability of a government to enforce the laws of the country, particularly with respect to protecting private property and enforcing contracts.
Per – worker production function
The relationship between real GDP per hour worked in capital per hour worked, holding the level of technology constant.
Labour productivity
The quantity of goods and services that can be produced by one worker or by one hour of work.
Human capital
The accumulated knowledge and skills that workers acquired from education and training or from their life experiences.
Foreign direct investment open (FDI)
The purchase or building by a corporation have a facility in a foreign country.
Catch-up
The prediction that the level of GDP per capita [or income per capita] and poor countries will go faster than rich countries.
Property rights
The rights of individuals or firms have to the exclusive use of the property, including the right to buy or sell it.
Industrial revolution
The application of mechanical power to the production of goods, beginning in England around 1750
New growth theory
A model of long – run economic growth that if the sizes that technological change is influenced by economic incentives and so is determined by the working of the market system.
Technological change
A change in the quantity of output a firm can produce using a given quantity of inputs.
Economic growth model
A model that explains growth rates in real GDP per capita over the long run.
Globalization
The process of country is becoming more open to foreign trade and investment.
