ECO 1102 Chapter Notes - Chapter 7: Foreign Portfolio Investment, Gross National Product, Diminishing Returns

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26 Aug 2016

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Productivity definition: the quantity of goods and services produced from each hour of a worker"s time. Why is productivity so important: productivity makes people better off. Productivity allows a nation to enjoy high standards of living. Canadians live better than nigerians because canadian workers are more productive. Nonrenewable: oil: technological knowledge: societies understanding of the best ways to produce goods and services. Difference between technological knowledge and human capital: technological knowledge refers to a societies understanding about how the world works. Human capital refers to the resources expended transmitting this understanding to the labor force. The importance of saving and investment: one way to raise future productivity is to invest more current resources in the production of capital. People face tradeoffs: for society to invest more in capital, it must consume less and save more of its current income. Poor countries have low productivity therefore capital investment would substantially raise these workers" productivity.

Related Questions

Article by Brandon Fuller.

A nation's GDP is determined by its labor force, its capital stock, and its technological knowledge. An increase in the amount of capital per worker increases a nation's GDP. An improvement in technology allows a nation to get more GDP out of its existing capital stock. Technology refers to the way an economy organizes its labor and capital to produce goods and services. If two nations have the same number of workers and capital but one nation uses better technology to get more out of its labor and capital, it will generate more GDP. The nation with better technology has higher productivity - it gets more output per hour of labor input.

A recent Hal Varian commentary in the New York Times focused on the role of technological knowledge in explaining the different productivity experiences of Europe and the United States. Compared to Europe, the United States experienced much stronger growth in output per labor hour over the past decade. Why? The evidence suggests that American firms integrate information technology more quickly than their European counterparts. Follow the link to find out more: Productivity.

ivoryoyster898

This question is from the article below.

By Brandon Fuller.

A nation's GDP is determined by its labor force, its capital stock, and its technological knowledge. An increase in the amount of capital per worker increases a nation's GDP. An improvement in technology allows a nation to get more GDP out of its existing capital stock. Technology refers to the way an economy organizes its labor and capital to produce goods and services. If two nations have the same number of workers and capital but one nation uses better technology to get more out of its labor and capital, it will generate more GDP. The nation with better technology has higher productivity - it gets more output per hour of labor input.

A recent Hal Varian commentary in the New York Times focused on the role of technological knowledge in explaining the different productivity experiences of Europe and the United States. Compared to Europe, the United States experienced much stronger growth in output per labor hour over the past decade. Why? The evidence suggests that American firms integrate information technology more quickly than their European counterparts. Follow the link to findout more: Productivity.

redmouse420

Please answer all of the following multiple choice questions... Thankyou!

International officials and business leaders have gathered to discuss free-trade policies. Outside their summit, protesters shout, "People before profit." These activists most likely align with which economic theory? (5 points)

	Adam Smith's unregulated supply and demand
	John Maynard Keynes's limited government intervention
	John Maynard Keynes's mixed market forces
	Karl Marx's collapse of capitalism

Marx would most likely support a plan for (5 points)

	government ownership of most production
	creating a worldwide free trade agreement
	eliminating income taxes on the wealthy
	income taxes based on ability to pay

Supply and demand determines prices levels for goods and services in a (5 points)

	market economy
	traditional economy
	demand economy
	command economy

Which of the following describes a developed/advanced nation? (5 points)

	A high gross domestic product and a low per capita income
	A high Human Development Index and a high per capita income
	A low gross domestic product and a low standard of living
	A low Human Development Index and a high standard of living

Development may be inhibited in command economies because (5 points)

	government controls productivity
	businesses focus on subsistence agriculture
	businesses prevent specialization
	individuals prohibit industrialization

Which of the following economic goals focuses on funding technological advances in production? (5 points)

	Efficiency
	Equity
	Freedom
	Security

The government institutes a new job-training program to prepare economically disadvantaged citizens for higher-paying, technologically advanced jobs. This action benefits the goal of equity by (5 points)

	ensuring workers are more productive
	helping minimize the education gap
	raising government spending
	reducing unemployment

ECO 1102 Chapter Notes - Chapter 7: Foreign Portfolio Investment, Gross National Product, Diminishing Returns

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