30 mon - Better accounting methods Inventory control...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
18:34 Explaining Economic Development Sources of Productivity Growht o “Advances in knowledge that raised output or lower costs.”  Paul David (1989) – research on the electric motor and the assembly  line o Specialization and division of labor Allowing workers to specialize (according to skills + abilities) allows for  more output per worker o Realization of economies of scale ^ all inputs by x% > ^ in output of greater than x% Thus, the firms long range average cost (per unit cost) falls as output  rises o Investments in human capital Education + training Nutritition + healthcare o
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Better accounting methods Inventory control Performance based pay & promotion • Institutions Matter (p17) o Institutions provide incentives that affect choice and can thus drive (or inhibit) economic development Stable and limited government Relatively peaceful domestic & international relations Predictable and relatively safe leadership even through change Secure money and banking system Laws establishing & protecting private property rights Incentive for invention and innovation (patent + copyright laws) Facilitate buying and selling Market-oriented economy 18:34 18:34...
View Full Document

This note was uploaded on 10/05/2010 for the course FIN 3000 taught by Professor Ackute during the Spring '10 term at Kennesaw.

Page1 / 3

30 mon - Better accounting methods Inventory control...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online