Economic Growth and Capitalism - Economic Growth and...

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Economic Growth and Capitalism Economic Growth Occurs when total output of goods/services increases over time Productivity : efficient use of resources measure of amount of output produced by given level of inputs in specific period of time Specialization : when people, businesses, regions, & countries concentrate on goods or services that they can produce better than anyone else Increases productivity Division of Labor : breaking down a job into small tasks performed by different workers also improves productivity Human capital: Businesses invest in people’s skills, abilities and motivation to increase productivity Economic Interdependence : because of specialization people rely on each other Capitalism Capitalism : an economic system in which private citizens own and use the factors of production in order to seek a profit . Free enterprise : competition is allowed to grow with minimal gov’t interference .
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