ECON 1BB3 Lecture 10: lecture ten

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

Which country has the highest per capital gdp: usa, liechtenstein, qatar, norway. Productivity y productivity: the quantity of goods and services that a worker can produce for each hour of work y determinants of productivity: physical capital, human capital, natural resources, technological knowledge. Production function y production function: shows how we combine inputs to produce output y y=a. f(k,l,h,n) y y= output, income, expenditure y a= technology y f= function y k= physical capital y y h= human capital y n= natural resources. Which of the following is human capital: breakfasts served in a company s cafeteria, understanding how to use a company s accounting software, training videos for new corporate employees, all of the above y. If a production function exhibits constant return to scale, then doubling all inputs leads to a doubling of output. Catch- up effect y catch up effect: poor countries tend to grow faster than rich countries.