Chapter 25 - Production and Growth
Productivity is the amount of goods and services
produced for each hour of a worker's time. It is linked to a nation's economic policies.
One variable responsible for most significant explanation of variations in living standards around the world is
productivity
In order to promote growth in living standards, policymakers must
protect property rights and maintain political stability.
Proprietary technology is knowledge that is known
only by the company that discovered it
Other things the same, which of the following would increase productivity?
An increase in either human or physical capital
Which of the following can be measured by the level of real GDP per person?
The standard of living but not productivity
Which of the following in an example of human capital?
The things you have learned this semester
Industrial machinery is an example of
a factor of production that is in the past was an output from the production process
In determining living standards, productivity plays a key role for
both nations and individuals
The catch-up effect refers to the idea that
it is easier for a country to grow fast and so catch-up if it starts out relatively poor.
In an economy where net exports are zero, if saving rises in some period, then in that period
consumption falls and investment rises.
The traditional view of the production process is that capital is subject to
diminishing returns, so that other things the same, real GDP in poor countries should grow at a faster rate than in rich countries.
A policy that increases saving will
improve economic growth and health outcomes
An understanding of the best ways to produce goods and services is called
technology
The key determinant of the standard of living in a country is
the amount of goods and services produced from each hour of worker's time.