MGTA02H3 Study Guide - Final Guide: Gross Domestic Product, Capacity Planning, Workforce Productivity
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MGTA02H3 Full Course Notes
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Definition: a ratio that compares input factors: output products. National productivity: a measure how productive an economy is: gdp/capita: country can be productive when it has plentiful, high quality factors of production that are used effectively. Nominal gdp: measures current quantity and current prices (eg. Qn 2016 x pn 2016 = 2016 gdp: how governments may benefit from inflation, inflation is a hidden tac on citizens reduces the living standards. Real gdp: measures gdp at constant prices (eg. Pn 2002 = 2016 gdp: real gdp divided by population, better measure of material well-being than nominal and real gdp, country with higher gdp and large population might not fair well. Gdp and social well being: measures the material well being, reports total and average productivity but not he distribution of wealth, ignores social and political factors such as human rights; democratic right, treatment of less privileged.