Heckscher-Ohlin theorem – A theory that explains why a country has
a comparative advantage based on its endowments of the factors of
production. It argues that a country
will have a comparative advantage in a certain good or service if factors of
production used to produce that good are service are relatively abundant in the
country and they are used intensively in the production process.
Herfindahl-Hirschman Index – The percentage market share squared
of each firm summed over the 50 largest firms within a market. The higher the number the more oligopolistic
the market is because few firms have a relatively large percentage, but if each
firms market share is small, the resulting Herfindahl-Hirschman Index will be
small.
Household production – The production of goods and services within
the home.
Households – The agents in the economy that consume goods and
services and supply the factors of production.
Human capital – The knowledge and skill that people obtain from
education, training and experience.
Human capital is believed to make people more productive and is
sometimes considered a factor of production alongside physical capital.
Hyperinflation – A period
of large increases in the overall price level, generally increasing at a rate
over 10X annually.
