Term
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Definition
| the ratio of a specific measure of output, such as real GDP, to a specific measure of input, such as labor; in this case productivity measures real GDP as a product of labor. |
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| output per unit of labor; measured as real GDP divided by the hours of labor employed to produce that output. |
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| per-worker production function |
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Definition
| the relationship between the amount of capital per worker in the economy and average output per worker |
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Term
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Definition
| an increase in the amount of capital per worker; one source of rising labor productivity |
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Definition
| the formal and informal institutions that promote economic activity; the laws, customs, manners, conventions, and other institutional elements that determine transaction costs and thereby affect people's incentive to undertake production and exchange |
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| industrial market countries |
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Definition
| economically advanced capitalist countries of Western Europe, North America, Australia, New Zealand, and Japan, plus the newly industrialized Asian economies of Taiwan, South Korea, Hong Kong, and Singapore |
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Definition
| countries with a low living standard because of less human and physical capital per worker |
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Definition
| the search for knowledge without regard to how that knowledge will be used |
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Definition
| research that seeks answers to particular questions or to apply scientific discoveries to develop specific products |
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Definition
| the view that government-using taxes, subsidies, and regulators- should nurture the industries and technologies of the future, thereby giving these domestic industries an advantage over foreign competition |
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Term
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Definition
| a theory predicting that the standards of living in economies around the world will grow more similar over time, with poorer countries eventually catching up with richer ones |
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