Economics Hubbard & O’Brien Chapter 22 – Flashcards

The application of mechanical power to the production of goods, beginning in England around 1750.

A model that explains growth rates in real GDP per capita over the long run.

The quantity of goods and services that can be produced by one worker or by one hour of work.

A change in the quantity of output a firm can produce using a given quantity of inputs.

The accumulated knowledge and skills that workers acquire from education and training or from their life experiences.

The relationship between real GDP per hour worked and capital per hour worked, holding the level of technology constant.

The exclusive right to produce a product for a period of 20 years from the date the patent is applied for.

The prediction that the level of GDP per capita (or income per capita) in poor countries will grow faster than in rich countries.

The rights individuals or firms have to the exclusive use of their property, including the right to buy or sell it.

The ability of a government to enforce the laws of the country, particularly with respect to protecting private property and enforcing contracts.

The purchase or building by a corporation of a facility in a foreign country.

The purchase by an individual or a firm of stocks or bonds issued in another country.

The process of countries becoming more open to foreign trade and investment.

A model of long-run economic growth that emphasizes that technological change is influenced by economic incentives and so is determined by the working of the market system.