Chapter 6: Problem 19
What do economists mean when they refer to improvements in technology?
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Key Concepts
These are the key concepts you need to understand to accurately answer the question.
Chapter 6: Problem 19
What do economists mean when they refer to improvements in technology?
These are the key concepts you need to understand to accurately answer the question.
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Get started for freeWhat is capital deepening?
Say that the average worker in the U.S. economy is eight times as productive as an average worker in Mexico. If the productivity of U.S. workers grows at \(2 \%\) for 25 years and the productivity of Mexico's workers grows at \(6 \%\) for 25 years, which country will have higher worker productivity at that point?
Education seems to be important for human capital deepening. As people become better educated and more knowledgeable, are there limits to how much additional benefit more education can provide? Why or why not?
Over the past 50 years, many countries have experienced an annual growth rate in real GDP per capita greater than that of the United States. Some examples are China, Japan, South Korea, and Taiwan. Does that mean the United States is regressing relative to other countries? Does that mean these countries will eventually overtake the United States in terms of the growth rate of real GDP per capita? Explain.
How is GDP per capita calculated differently from labor productivity?
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