Chapter 25 - Rikki Norton Chapter 25 1. Why is productivity...

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Rikki Norton Chapter 25 1. Why is productivity related to the standard of living? In your answer be sure to explain what productivity and standard of living mean. Make a list of things that determine labor productivity. Productivity is the quantity of goods and services produced from each unit of labor input. Productivity is related to the standard of living, the amount of comfort and material goods available, because a person or nation can only consume as much as they are producing so when their productivity is higher they are better off. 2. What is a production function? Write an equation for a typical production function, and explain what each of the terms represents. A production function is what economists use to describe relationships between the quantity of inputs used in production and the outputs from production, an example of an equation for production function is: Y=AF(L,K,H,N). In this equation the Y represents the quantity of output, L represents the quantity of labor, K represents the quantity of physical capital, and N represents the quantity of natural resources. 3.
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This note was uploaded on 03/14/2011 for the course POLSCI 1123 taught by Professor Thompson during the Spring '11 term at Oklahoma State.

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Chapter 25 - Rikki Norton Chapter 25 1. Why is productivity...

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