Sunday, April 29, 2012

6 - Productivity and Growth

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Productivity and Growth - CrCo > .
22-2-4 How to Read the Jobs Report | WSJ > .


1. Why some countries have high GDP and others have low GDP (some countries are rich and other poor):
a. Lack of natural resources.
b. Corrupt governments.

2. GDP per capita(output per person) is used to tell how wealthy a country is.

3. Countries with high GDP/capita have far less infant mortality, poverty and preventable diseases.

4. Productivity and growth:
a. The more a worker produces, the more a worker can earn.
b. Economists argue that the main reason that some countries are rich is because of productiivty.
c. Higher value produce also the growth effect.
d. Productivity is key, but there are limits.

5. People in poor countries need food, water, plumbing, hospitals and medicine, and all of those things are needed to get better efficiency.

6. How much stuff is produced per person(can be called GDP)

7. Factors of production effect the efficiency:
a. Land
b. Workers
c. Capital( and also workers education, knowledge aka human capital)
d. Technology: The sum total of knowledge and information that society has acquired concerning the use of resources to produce goods and services. (Connectivity= productivity).

Increasing Productivity has resulted in increasing standards of living(globally and historically).

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