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Ch 10: Understanding Economic Growth and Productivity

About This Chapter

Refer to these video and text lessons to develop a deeper understanding of the factors that affect productivity and economic growth. Enhance your studies for an economics course, prepare for a class test or refresh your memory before taking a professional certification exam.

Understanding Economic Growth & Productivity - Chapter Summary

In this chapter, you'll review economic growth and productivity. You'll take a look at what the GDP is and what it affects, what the term 'physical capital' refers to and how technology affects productivity. Once you have completed your review of the lessons, you should possess the ability to do the following:

  • Discuss the definition of economic growth
  • State what real GDP affects
  • List the factors that affect productivity
  • Define human and physical capital and how each affects productivity
  • Relate the impact of technology on productivity
  • Describe policies that encourage economic growth
  • Provide details about national income accounting methods

Our expert instructors guide you through short but detailed lessons that take only 5-10 minutes to complete. All of the lessons are accessible at any time, from any device. Use the self-assessment quizzes accompanying each lesson to determine what you have retained and measure your readiness to move on to the next topic. Monitor your progress through the chapter using your Dashboard.

8 Lessons in Chapter 10: Understanding Economic Growth and Productivity
Test your knowledge with a 30-question chapter practice test
Economic Growth: How to Raise a Nation's Potential Output

1. Economic Growth: How to Raise a Nation's Potential Output

Learn the truth about long run economic growth, including how economists define and illustrate an increase in the potential output of a nation through change in real GDP.

How Real GDP per Capita Affects the Standard of Living

2. How Real GDP per Capita Affects the Standard of Living

Have you ever wondered why some countries are better off than others? In this lesson, explore the concept of real GDP per capita, an economic measure of a nation's standard of living, and discover how population, productivity, and the savings rate effect the standard of living.

Productivity: The Economy's Long-Run Growth Engine

3. Productivity: The Economy's Long-Run Growth Engine

Using real-world examples, you'll learn more about what productivity is and four things that determine it within a nation - physical capital, technology, human capital, and natural resources.

Investment in Human Capital and Productivity

4. Investment in Human Capital and Productivity

This lesson explores the education, knowledge and skills of the labor force - what economists call human capital - including how it affects productivity and economic output.

Physical Capital: Definition and Effects on Productivity

5. Physical Capital: Definition and Effects on Productivity

This lesson explains what physical capital is and why it's important to an economy. Using real-world examples, you'll see how it relates to the process of producing goods and services, which is a major foundation of economic growth.

How Technology, Research & Development Affect Productivity

6. How Technology, Research & Development Affect Productivity

Economists consider productivity to be a nation's long-run growth engine. This lesson explores the connection between technology, research & development, and productivity, using real-world examples.

Growth Policy and Economic Productivity

7. Growth Policy and Economic Productivity

What do savings accounts and promoting education have to do with helping the economy to grow? In this lesson, we will explore government policies that help promote higher long-run economic growth.

National Income Accounting

8. National Income Accounting

GDP is a common macroeconomic concept used to describe the size of a country's economy. But where does this number come from? In this lesson, we'll discuss national income accounting - the methodology used to calculate GDP.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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