Stock Value of Human and Physical Capital over the past 50 years.



  • Definition: The quantity of goods and services produced from each unit of labor input.
  • What It Means:

Physical Capital

  • Definition: The stock of equipment and structures that are used to produce goods and services.
  • What It Means:

Human Capital

  • Definition: The knowledge and skills that workers acquire through education, training, and experience.
  • What It Means:

Natural Resources

  • Definition: The inputs into the production of goods and services that are provided by nature, such as land, rivers, and mineral deposits.
  • What It Means:

Technological Knowledge

  • Definition: Society's understanding of the best ways to produce goods and services.
  • What It Means:

Diminishing Returns

  • Definition: The property whereby the benefit from an extra unit of an input declines as the quantity of the input increases.
  • What It Means:

Catch-Up Effect

  • Definition: The property whereby countries that start off poor tend to grow more rapidly than countries that start off rich.
  • What It Means: