ECON 102 Lecture Notes - High Standard Manufacturing Company, Human Capital, Longrun
16 Oct 2011
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Introduction large differences in income are reflected in the differences in the quality of life. Again, real gdp growth measures how rapidly real gdp per person grew in the typical year. Growth rates in chart show not the actual rate per year, since it rose in some years more than in others, it ignores short-run fluctuations around the long-run trend and represents an average rate of growth for real. Gdp/person the data shows that world"s richest countries have no guarantee they will stay the richest and world"s poorest are not doomed forever in poverty. Productivity refers to the amount of goods and services produced from each hour of a workers time. A country"s standard of living depends on its ability to produce goods and services. Productivity is a key determinant in the standard of living. A nation can enjoy a high standard of living only if it can produce a large quantity of g&s.
