Log in
HomeClass Notes1,200,000CA670,000

ECO 1102 Lecture Notes - Lecture 6: Foreign Portfolio Investment, Diminishing Returns, Physical Capital

39 views7 pages
30 Mar 2016
School
University of Ottawa
Department
Economics
Course
ECO 1102
Professor
Octavian Strimbu

For unlimited access to Class Notes, a Class+ subscription is required.

roza220x and 38789 others unlocked
ECO 1102 Full Course Notes
46
ECO 1102 Full Course Notes
Verified Note
46 documents

Document Summary

Explaining the large variaion in living standards around the world is, in one sense, very easy. Producivity: the quanity of goods and services produced from each hour of a worker"s ime. Producivity is the key determinant of living standards. Growth in producivity is the key determinant of growth in living standards. For a country to enjoy a high standard of living, it must produce a large quanity of goods and services. Physical capital: the stock of equipment and structures that are used to produce goods and services (machines, etc. ) Human capital: the knowledge and skills that workers acquire through educaion, training, and experience. Natural resources: the inputs into the producion of goods and services that are produced by nature, such as land, rivers, and mineral deposits. Technological knowledge: society"s understanding of the best ways to produce goods and services (with technology it"s easier to produce things.

Get access

Grade+
$40 USD/m
Billed monthly
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related Documents

ECO 1102 Lecture Notes - Lecture 6: Diminishing Returns, High Standard Manufacturing Company, Physical Capital
pinkguinea-pig341
ECO 1102 Lecture Notes - Lecture 6: Foreign Portfolio Investment, International Monetary Fund, Diminishing Returns
peartortoise481
ECO 1102 Lecture Notes - Lecture 5: Invisible Hand, Foreign Portfolio Investment, Human Capital Flight
rosetermite420

Related Questions

Capital can be differentiated between physical capital and human capital. Human capital is: 
 
(i) the new development in machinery and software.
(ii) the knowledge and skills workers acquire from education and training or their life experiences.
(iii) the energy use to bring together the factors of production to produce goods and services.
(iv) the goods manufactured to produce other goods and services. 

This question is from the article below.

By Brandon Fuller.

A nation's GDP is determined by its labor force, its capital stock, and its technological knowledge. An increase in the amount of capital per worker increases a nation's GDP. An improvement in technology allows a nation to get more GDP out of its existing capital stock. Technology refers to the way an economy organizes its labor and capital to produce goods and services. If two nations have the same number of workers and capital but one nation uses better technology to get more out of its labor and capital, it will generate more GDP. The nation with better technology has higher productivity - it gets more output per hour of labor input.

A recent Hal Varian commentary in the New York Times focused on the role of technological knowledge in explaining the different productivity experiences of Europe and the United States. Compared to Europe, the United States experienced much stronger growth in output per labor hour over the past decade. Why? The evidence suggests that American firms integrate information technology more quickly than their European counterparts. Follow the link to findout more: Productivity.

Article by Brandon Fuller.

A nation's GDP is determined by its labor force, its capital stock, and its technological knowledge. An increase in the amount of capital per worker increases a nation's GDP. An improvement in technology allows a nation to get more GDP out of its existing capital stock. Technology refers to the way an economy organizes its labor and capital to produce goods and services. If two nations have the same number of workers and capital but one nation uses better technology to get more out of its labor and capital, it will generate more GDP. The nation with better technology has higher productivity - it gets more output per hour of labor input.

A recent Hal Varian commentary in the New York Times focused on the role of technological knowledge in explaining the different productivity experiences of Europe and the United States. Compared to Europe, the United States experienced much stronger growth in output per labor hour over the past decade. Why? The evidence suggests that American firms integrate information technology more quickly than their European counterparts. Follow the link to find out more: Productivity.