Production and Growth
Hit-It produces 320 baseball bats per day using 2 workers who each work 8 hours per day. What is HitIt's productivity?
20 baseball bats per hour
Why does America have a higher standard of living than Indonesia?
American workers are more productive than Indonesian workers
In 1870 the richest country in the world was
United Kingdom
Which of the following countries had the highest level of real GDP per person in 2010?
United States
The level of real GDP person
and the growth rate of real GDP per person vary widely across countries
What is an example of physical capital in a restaurant? Owners knowledge of preparing an entree, or chairs and tables, or the money in the owner's account at the bank from which she borrowed money, or the fresh fruits, vegetables, and grains the restaurant uses to prepare its meals
chairs and tables
In determining living standards, productivity plays a key role
for both individuals and nations
Productivity is defined as the quantity of
goods and services produced from each unit of labor input
What items play a role in productivity
physical capital, natural resources, technological knowledge
The one variable that stands out as the most significant explanation of large variations in living standards around the world is
productivity
A nation's standard of living is best measured by its
real GDP per person
What measure the level of well being in a country as it changes over time?
the level of nominal GDP per person