ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A production function is the process of turning economic inputs like labor, machinery, and raw materials into outputs like goods and services used by consumers.

Detailed explanation-2: -Aggregate production function-the process whereby an economy as a whole turns economic inputs such as human capital, physical capital, and technology into output measured as GDP per capita. (Source: U.S. Department of Labor, Bureau of Labor Statistics.)

Detailed explanation-3: -An aggregate production function specifies how certain inputs in the economy, like human capital, physical capital, and technology, lead to the output measured as GDP per capita.

Detailed explanation-4: -Economic conditions refer to the present state of the economy in a country or region. These conditions change over time along with the economic and business cycles, as an economy goes through periods of expansion and contraction.

Detailed explanation-5: -When society increases the level of capital per person, we call the result capital deepening. The idea of capital deepening can apply both to additional human capital per worker and to additional physical capital per worker.