Glossary from chapter 6 "Economic Growth" of the book OpenStax, Principles of Macroeconomics for AP® Courses
This glossary was extracted from Chapter 6 of the book OpenStax, Principles of Macroeconomics for AP® Courses. OpenStax CNX. 4 Aug 2017 which is licensed under a Creative Commons Attribution 4.0 International License.
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the process whereby an economy as a whole turns economic inputs such as human capital, physical capital, and technology into output measured as GDP per capita
an increase by society in the average level of physical and/or human capital per person
the rate of growth when multiplied by a base that includes past GDP growth
the rights of individuals to enter into agreements with others regarding the use of their property providing recourse through the legal system in the event of noncompliance
pattern in which economies with low per capita incomes grow faster than economies with high per capita incomes
the accumulated skills and education of workers
the widespread use of power-driven machinery and the economic and social changes that occurred in the first half of the 1800s
a component of physical capital such as roads, rail systems, and so on
putting advances in knowledge to use in a new product or service
advances in knowledge
the value of what is produced per worker, or per hour worked (sometimes called worker productivity)
the period of rapid economic growth from 1870 onward
the plant and equipment used by firms in production; this includes infrastructure
the process whereby a firm turns economic inputs like labor, machinery, and raw materials into outputs like goods and services used by consumers
the process of enacting laws that protect individual and entity rights to use their property as they see fit. Laws must be clear, public, fair, and enforced, and applicable to all members of society
area of a country, usually with access to a port where, among other benefits, the government does not tax trade
a combination of invention—advances in knowledge—and innovation
all the ways in which existing inputs produce more or higher quality, as well as different and altogether new products