ch12-1 - PRODUCTIONAND PRODUCTIONAND GROWTH Production and...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon
PRODUCTION AND  PRODUCTION AND  GROWTH GROWTH Production and Growth 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
In this chapter,  In this chapter,  look for the answers to these questions: look for the answers to these questions: What are the facts about living standards and growth rates around the world? Why does productivity matter for living standards? What determines productivity and its growth rate? How can public policy affect growth and living standards? 2
Background image of page 2
A typical family with all their possessions in the U.K., an advanced economy GDP per capita: $35,580 Life expectancy: 79 years Adult literacy: 99%
Background image of page 3

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

View Full DocumentRight Arrow Icon
A typical family with all their possessions in Mexico, a middle income country GDP per capita: $11,410 Life expectancy: 76 years Adult literacy: 92%
Background image of page 4
A typical family with all their possessions in Mali, a poor country GDP per capita: $1,130 Life expectancy: 50 years Adult literacy: 46%
Background image of page 5

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

View Full DocumentRight Arrow Icon
GDP per capita, 2005 Growth rate, 1960-2005 China $6,572 5.8% Singapore 29,921 5.4% Japan 30,821 3.8% Spain 26,125 3.2% India 3,486 2.7% Israel 25,670 2.7% United States 41,854 2.2% Canada 32,886 2.1% Colombia 7,769 1.8% New Zealand 22,511 1.4% Philippines 4,920 1.4% Argentina 14,421 1.0% Saudi Arabia 14,729 0.8% Rwanda 1,333 0.3% Haiti 1,836 –1.2% Incomes  and Growth  Around the  World FACT 1: There are vast differences in living standards around the world.
Background image of page 6
GDP per capita, 2005 Growth rate, 1960-2005 China $6,572 5.8% Singapore 29,921 5.4% Japan 30,821 3.8% Spain 26,125 3.2% India 3,486 2.7% Israel 25,670 2.7% United States 41,854 2.2% Canada 32,886 2.1% Colombia 7,769 1.8% New Zealand 22,511 1.4% Philippines 4,920 1.4% Argentina 14,421 1.0% Saudi Arabia 14,729 0.8% Rwanda 1,333 0.3% Haiti 1,836 –1.2% Incomes  and Growth  Around the  World FACT 2: There is also great variation in growth rates across countries.
Background image of page 7

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

View Full DocumentRight Arrow Icon
PRODUCTION AND GROWTH 8 Incomes and Growth Around the World Since growth rates vary, the country rankings can change over time: Poor countries are not necessarily doomed to poverty forever – e.g. , Singapore, incomes were low in 1960 and are quite high now. Rich countries can’t take their status for granted: They may be overtaken by poorer but faster-growing countries.
Background image of page 8
PRODUCTION AND GROWTH 9 Incomes and Growth Around the World Questions: Why are some countries richer than others? Why do some countries grow quickly while others seem stuck in a poverty trap? What policies may help raise growth rates and long-run living standards?
Background image of page 9

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

View Full DocumentRight Arrow Icon
10 Productivity Recall one of the Ten Principles from Chap. 1: A country’s standard of living depends This ability depends on productivity , the average quantity of g&s produced per unit of labor input. Y
Background image of page 10
Image of page 11
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 01/17/2012 for the course ECON 002 taught by Professor Eudey during the Fall '08 term at UPenn.

Page1 / 53

ch12-1 - PRODUCTIONAND PRODUCTIONAND GROWTH Production and...

This preview shows document pages 1 - 11. Sign up to view the full document.

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