week 6 Flashcards
1
Q
convergence
A
The tendency for coun- tries with lower output per capita to grow faster, leading to convergence of output per capita across countries.
2
Q
Malthusian trap
A
the case of an economy where increases in productivity lead to a decrease in mortality and an increase in population, leaving income per person unchanged
3
Q
saving rate
A
the proportion of income that is saved
4
Q
to find the marginal product
A
do the first derivative of the production function to get
MPK and MPN
5
Q
to find if the marginal product of K and N are increasing or decreasing
A
find the second partial derivative of MPK and MPN
