As the economic advisor of Lisavia one of my main focus will be making sure that not just the president of Lisavia but especially the population of this country understand the factors that influence the desired increase in their standard of living. In order to increase their standard of living I will have to advise them as to which policies should be implement in order to rise productivity levels, income and with it be finally able to achieve their goals.
However before submerging ourselves in the different ways that can be used to improve the standard of living of a specific country we need to have to tools and knowledge to talk about the topic, so I will be introducing some needed definitions along the way.
Our first question to tack will …show more content…
It is necessary to recall that an economy’s GDP measures both the total income earned by every single one of us in the economy and the total expenditure on the economy’s output of goods and services. These take us to the conclusion that an economy’s input directly reflects the economy’s output. One of the reasons why Americans live better than other countries is because our workers are more productive, which causes a raise in their income and along with it a raise in our standards of …show more content…
The knowledge and skills that workers acquire through education, training and experience is of much help when trying to improve productivity. With more prepared workers the quality of goods and services provided will definitely generate a call for demand which will not just reflect a raise in the income of those who work in that specific business but a raise in the outputs of the economy as well.
Natural resources, another of the factors of productivity, is defined as inputs into production that are provided by nature, such as lands, rivers, and mineral deposits. They take two forms: renewable and nonrenewable. Trees are example of renewable resources while petroleum is considered nonrenewable. Differences in natural resources may be the cause in some places for lower levels of productivity. Places like Saudi Arabia are rich because of their pools of oil, while other like the United States itself have been driven by the large landscapes well suited for
However before submerging ourselves in the different ways that can be used to improve the standard of living of a specific country we need to have to tools and knowledge to talk about the topic, so I will be introducing some needed definitions along the way.
Our first question to tack will …show more content…
It is necessary to recall that an economy’s GDP measures both the total income earned by every single one of us in the economy and the total expenditure on the economy’s output of goods and services. These take us to the conclusion that an economy’s input directly reflects the economy’s output. One of the reasons why Americans live better than other countries is because our workers are more productive, which causes a raise in their income and along with it a raise in our standards of …show more content…
The knowledge and skills that workers acquire through education, training and experience is of much help when trying to improve productivity. With more prepared workers the quality of goods and services provided will definitely generate a call for demand which will not just reflect a raise in the income of those who work in that specific business but a raise in the outputs of the economy as well.
Natural resources, another of the factors of productivity, is defined as inputs into production that are provided by nature, such as lands, rivers, and mineral deposits. They take two forms: renewable and nonrenewable. Trees are example of renewable resources while petroleum is considered nonrenewable. Differences in natural resources may be the cause in some places for lower levels of productivity. Places like Saudi Arabia are rich because of their pools of oil, while other like the United States itself have been driven by the large landscapes well suited for