3.3 Economic Growth
MyEconLab Concept Video
The PPF shows the limits to production with given resources and technology. But over time, resources and technology change and production possibilities expand. A process of sustained expansion of production possibilities is called economic growth. Our economy grows when we develop better technologies; improve the quality of labor by education, on-the-job training, and work experience; and acquire more machines (capital) to help us produce.
To study economic growth, we must look at the production possibilities for a consumption good—a smartphone—and a capital good—a smartphone factory. By using resources to produce smartphone ...
Get Foundations of Economics, 8th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
