Chapter 7 - Chapter 7 Production and Growth GDP measures...

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Chapter 7 – Production and Growth GDP measures total output of goods and total income earned in an economy 1. Productivity a. Nations can enjoy high living standards if it can produce large quantities of goods. 2. Determinants of Productivity a. Physical Capital – The stock of equipment and structures ( Factors of Production ) used to produce goods. i. Makes workers more productive. b. Human Capital – The knowledge and skills that workers acquire through education, training, and experience. i. Inputs towards Human Capital include teachers, libraries. c. Natural Resources – Inputs into production of goods that are provided by nature, such as land, water, and minerals. i. Renewable – Forests ii. Nonrenewable – Oil iii. Not necessary for an economy to be highly productive d. Technology Knowledge – Is society’s understanding of the best ways to produce goods. i. Societies understanding of how the world works. 3.
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This note was uploaded on 12/03/2008 for the course ECO 2013 taught by Professor Johnhodgson during the Spring '08 term at University of South Florida - Tampa.

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Chapter 7 - Chapter 7 Production and Growth GDP measures...

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