Chap 2 Flashcards
Gross Domestic Product
total market value of all goods and services a nation produces in a year
Per Capita GDP
simply a nations total output divided by its total population
mix of output of a country?
includes both goods and services
Factors of production
resource inputs used to produce goods and services
Human Capital
knowledge and skill of workers
Capital Intensive
production processes that use a high ratio of capital to labor inputs
- indian farms use their hands we have machiens
- russian business men dont have the same computer technology we do
- educated workers + sophisticated capital equipment = what?
more output
Productivity?
amount of output produced by the average worker
factor mobility?
we rellocate resources from one industry to another well
SEE NOTES
monopoly
firm that produces the entire market supply of a particular good or service
Income Quintile
15th of the population, rank ordered by income
- income inequalities greater in some other countries
How does Government Protect Labor?
- child labor laws
- set standards for workplace safety, minimum wages, fringe benefits, and overtime provisions
How does government protect consumers?
- prvent individual busines firms from becoming too pwoerful
- requires testing on drugs
What are externalities?
spillover costs imposed on the broader community
- whenever factory polluted water and lowered cots of house etc…
How does government protect environment?
- protect interest of buyer and seller who wish to do business
- make sure no pollution
