ECO 1102 Lecture Notes - Lecture 7: Candu Reactor, International Monetary Fund, Foreign Portfolio Investment

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Octavian Strimbu

Document Summary

R = growth rate | given r = 0. 05, Average gdp is not enough, distribution is what"s missing (very important to know rich, middle class, & poor) If you do not have technology, capital, skills, you cannot produce. How productivity is determined (4 things: physical capital per worker. Physical capital: stock of equipment & structures that are used to produce goods & services: human capital per worker. Human capital: knowledge & skills that workers acquire thru education, training, & experience: natural resources, technological knowledge. Inputs into production of goods & services that are produced by nature (i. e. land, rivers, & mineral deposits) Society"s understanding of best ways to produce goods & services. Af (k 1 l1 h 1 n1) resources. ------- k = technological knowledge | l = labour | h = human resources | n = natural. B/c resources are scarce, devoting more resources to producing capital requires devoting fewer resources to producing goods & services for current consumption.