• capital formation(machines, factories,roads) • Technology(science,engineering,management,ent
repreneurship)
an increase in labor supply
• பைடு நூலகம்n increasing labor supply can genetate more output.
• Diminishing returns
If the capital stock remains fixed while labor increases, it is likely that the new labor will be less productive than the old labor.
• 3.What do you think of Chinese economic growth ?
• the four wheels of growth: • human resouces(labor
suply,education,discipline,motivation)
• natural resources(land,minerals,fuels,
enviromental quality)
Capital equipment produces in one year can add to the value of a product over many
years.
increases in human capital
• Individuals • Firms • Government
increases in productivity