Topic 3: Production & Productivity
Key Points
- Understand the factors that contribute to an economy’s capacity to produce goods and services
- Distinguish between productivity and production
- Be able to write down and understand a production function
- Understand the difference between frontier and non-frontier economies
- Understand the concept of economic institutions and how they shape incentives
- Distinguish between growth at the frontier and "catch-up” growth
Videos
The Long Run: An Introduction
Potential Output
Production Function and Productivity
Marginal Products
Graphing the Production Function
Production Function and Productivity