Econ Flashcards
Institutions
the laws and norms that govern economic behavior
Real Interest Rate
the amount earned by saving one unit of output over a period of time
Rivalry
the degree to which something cannot be used by multiple consumers or firms
Increasing Returns
falling average costs of production
Growth accounting
a method of assessing the relative contributions of capital, human capital and TFP in economic growth
IPR system
The set of laws governing the protection of intellectual property rights in a country
Excludability
The ability to prevent others from using or copyright a product or process
Transition Dynamics
The path of adjustment over time to the Solow’s model steady-state
Balanced growth path
a situation in which all variables grow at constant rates, indefinitely.
