Topic 3: Production & Productivity

Key Points

  1. Understand the factors that contribute to an economy’s capacity to produce goods and services
  2. Distinguish between productivity and production
  3. Be able to write down and understand a production function
  4. Understand the difference between frontier and non-frontier economies
  5. Understand the concept of economic institutions and how they shape incentives
  6. Distinguish between growth at the frontier and "catch-up” growth

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