Campbell R. McConnell,
University of Nebraska, Lincoln
Stanley L. Brue,
Pacific Lutheran University
Thomas P. Barbiero,
Ryerson University
| Demand factor (in growth) | The increase in the level of aggregate demand that brings about the economic growth made possible by an increase in the production potential of the economy.
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| Economies of scale | Reductions in the average total cost of producing a product as the firm expands the size of plant (its output) in the long run; the economies of mass production.
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| Efficiency factors (in growth) | The capacity of an economy to combine resources effectively to achieve growth of real output that the supply factors (of growth) make possible.
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| Increasing returns | An increase in a firm's output by a larger percentage than the percentage increase in its inputs.
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| Information technology | New and more efficient methods of delivering and receiving information through use of computers, fax machines, wireless phones, and the Internet.
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| Infrastructure | The capital goods usually provided by the public sector for the use of its citizens and firms (for example, highways, bridges, transit systems, wastewater treatment facilities, municipal water systems, and airports).
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| Labour-force participation rate | The percentage of the working-age population that is actually in the labour force.
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| Labour productivity | Total output divided by the quantity of labour employed to produce it; the aver age product of labour or output per worker per hour.
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| Learning-by-doing | Achieving greater productivity and lower average total cost through gains in knowledge and skill that accompany repetition of a task; a source of economies of scale.
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| Network effects | Increases in the value of a product to each user, including existing users, as the total number of users rises.
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| New Economy | The economy, developed since 1995, with the main characteristics of substantially faster productivity growth and economic growth, caused by rapid technological advance and the emergence of the global economy.
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| Startup (firm) | A new firm focussed on creating and introducing a particular new product or employing a specific new production or distribution method.
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| Supply factor (in growth) | An increase in the availability of a resource, an improvement in its quality, or an expansion of technological knowledge that makes it possible for an economy to produce a greater output of goods and services.
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2002 McGraw-Hill Higher Education