ECON 1BB3 Chapter Notes - Chapter 7: Foreign Portfolio Investment, Gross Domestic Product, Human Capital

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

Document Summary

Large differences in income is re ected in large differences in living standards. Even within a country there are large differences of living standards: we can nd gdp for the long run in three steps. Examine international data on real gdp per person. Examine the role of productivity: the amount of goods and services produced for each hour of work, consider the link between productivity and the economic policies that a nation pursues. 1. 99: the rst and second columns present the countries time and periods, the third and fourth columns show estimates of real gdp per person, the last column shows each country"s growth rate. Because of differences in growth rate, the ranking of countries by income changes substantially over time. Productivity: the quantity of goods and services produced from each other of a workers time. How is productivity determined: there are four main determinants. Physical capital: human capital, natural resources, technological knowledge.