In the knowledge production functionAt+1=zAtLat

, the parameterz

represents______andAt

captures the idea that ______

the cost of producing new ideas; it get's harder to generate new knowledge over time.

how good an economy is at generating knowledge; new ideas are built on old ideas.

the marginal cost of labor; rich (productive) countries have a higher growth rate then poor ones.

the scarcity of skilled labor; small countries are at a disadvantage when it comes to producing new knowledge.