Economics 10b Chapter Notes - Chapter 25: High Standard Manufacturing Company, Human Capital, Longrun

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emeraldraccoon202

10 Jan 2019

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In the us over the past century, average income (real gdp per person) has grown by about 2 percent per year. Productivity: quantity of goods and services produced from each unit of labor input. A nation"s standard of living is determined by the productivity of its workers. Gdp measure two things: the total income earned by everyone in the economy the total expenditure on the economy"s output of goods and services. An economy"s income is the economy"s output. A nation can enjoy a high standard of living only if it can produce a large quantity of goods and services. Physical capital the stock of equipment and structures that are used to produce goods and services. Capital is a factor of production used to produce all kinds of goods and services, including more capital. Human capital the knowledge and skills that workers acquire through education, training, and experience.

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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

1. Productivity is defined as the quantity of

a. labor required to produce a nation's GDP.

b. goods and services produced per unit of time.

c. labor required to produce one unit of goods and services.

d. goods and services produced from each unit of labor input.

2. When market conditions in a competitive industry are such that firms cannot cover their total production costs, then

a. the firms will suffer short-run economic losses that will be exactly offset by long-run economic profits.

b. all firms will go out of business since consumers will not pay prices that enable firms to cover their total production costs.

c. some firms will exit the market, causing prices to rise until the remaining firms can cover their total production costs.

d. the firms will suffer long-run economic losses.

pinkhedgehog911

Economics 10b Chapter Notes - Chapter 25: High Standard Manufacturing Company, Human Capital, Longrun

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