-
Capital
Physical and intellectual property that is utilized by labor in the production of goods and services.
-
Capital Expenditure
Money spent on increasing the amount of capital in a firm or an economy.
-
Capital Stock
The total amount of capital in an economy or in a firm.
-
Convergence
The theory that all industrialized countries tend to approach one another over time in terms of GDP per capita.
-
GDP per Capita
Nominal GDP divided by the total population. This indicates the amount of a countrys total output that each member of the population theoretical has access to.
-
Golden Rule Level of Capital
The level of capital where consumption and savings are optimized.
-
Growth Level
The long term rate of growth.
-
Growth Rate
The short term rate of growth.
-
Human Capital
Intellectual property, like education and scientific discoveries, that affects the level of output in a firm or country.
-
Industrialized
Describes countries that have an infrastructure and government amenable to industrial development.
-
Infrastructure
Physical machinery and transportation that is in place to aid in industrialization.
-
International Market
The market for goods and services that spans countries.
-
Labor
Workers who utilize capital to produce output.
-
Labor Productivity Growth
An increase in the amount of output a given unit of labor can produce.
-
Nominal GDP
The total currency value of all goods and services produced in a national economy.
-
Open Market
A market for the sale and purchase of goods and services in which all countries may compete.
-
Output
Goods and services produced by firms.
-
Physical Capital
Machinery used by labor in the production of goods and services.
-
Production
The creation of output.
-
Production Capabilities
The capital that allows a given amount of potential output.
-
Productivity
The ability to produce output.
-
Prosperity
The creation of a high standard of living.
-
Savings Rate
The percentage of total income that is saved for future consumption.
-
Standard of living
The level of economic wellbeing enjoyed by members of a population.
-
Technological Progress
The advancement of technology over time due to scientific discoveries.
-
Trade
The purchase and sale of goods and services between entities.
-
Unemployment
The condition of being without a job but also actively searching for one.
-
Wage
Money paid or received in exchange for labor.