Production and Growth

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

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 determining living standards, productivity plays a key role

for both individuals and nations

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

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