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13 Cards in this Set
- Front
- Back
- 3rd side (hint)
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what is GDP
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Gross Domestic Product is the market value of all goods produced by a country at a given time
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How does the department of Commerce measure GDP
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The Department of Commerce measures GDP by adding purchases of final goods and services produced during a given year
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what does the Department of Commerce exclude?
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The department of Commerce excludes items produced and sold to businesses that use them to produce other things
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i.e. it counts the cost the jeans but not the effort/items used to make it
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Does GDP accurately measure changes from one year to another? If yes or no then why
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No, GDP does not measure changes accurately from 1 year to another. This is due to inflation
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what is real GDP
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Real GDP is inflation-adjusted GDP and shows changes in real production
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what is best indication of a nation's standard of living
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The per capita GDP is the best measure of a nation's standard of living. And it is found by dividing real GDP by a country's total population
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Labor productivity
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the amount a workforce can produce at a given time
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productivity
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output of goods as measured per unit of input
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When does per capita GDP increase? and what makes it increase
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per capita GDP only increases when the production of goods& services grows faster than the population. Increasing labor force productivity makes it increase
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what are the 3 human resources that increase productivity
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1) quantity of education
2) quality of education 3) worker's enthusiasm |
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how does the quality of management increase productivity
6 reasons |
1) innnotative management i.e. Ford
2)a seemingly insignicant decision that yields big increases 3)customer satisfaction 4) hi-quality workmanship, which buyers recognize& demand 5) empowerment: managers listen to employee ideas 6)shared vision/goals between the employee and employer |
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law of diminishing
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as more variable resources are added to a fixed amount, in an an effort to expand production, at some point the amount produced eventually diminishes
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why does the law of diminishing occurs
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the law of diminshing occcurs because variable costs crowd fixed costs of other resources. The marginal of producing an additional batch of chips will be greater than the 1 prior to it
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