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PRODUCTION AND GROWTH - Coggle Diagram
PRODUCTION AND GROWTH
Government Policies That Raise Productivity and Living Standards
Encourage saving and investment. (diminishing return)
Encourage investment from abroad
Encourage education and training.
Establish secure property rights and maintain political stability.
Promote free trade.
Promote research and development.
Productivity
the amount of goods and services produced for each hour of a worker’s time
determine
production level
a nation’s standard of living
Incomes
factors of production
directly determine productivity
The inputs used to produce goods and services
Physical capital
Human capital
Natural resources
Technological knowledge