Chapter 8 - Productivity and Growth

Question 1

Productivity

Answer 1

The ratio of output.

Ex: RGDP per hour of labor

Question 2

Labor Productivity

Answer 2

Output per unit of labor

RGDP/hrs labor

Question 3

Per-Worker Production Function

Answer 3

The relationship between capital per worker to average output per worker
(over time, function flattens)

Question 4

Capital Deepening

Answer 4

An increase in the amount of capital per worker

more capital=more productivity (to an extent)

Question 5

Industrial Market Countries

Answer 5

Economically advanced capitalist countries

Question 6

Developing countries

Answer 6

lower living standard due to less human/physical capital per worker

Question 7

Industrial Policy

Answer 7

The view that countries should protect domestic industries so they can compete with an advantage over foreigners

Question 8

Convergence Theory

Answer 8

predicts that standard of living will grow similar over time(converge) and poor countries will eventually catch up to rich ones.