1 / 8

Chapter 9

Chapter 9. Production and Productivity. Gross Domestic Product. GDP is the market value of all goods and services produced in a nation’s economy during a given time. It is made up of consumer, investment, and government spending. Shortcomings of GDP.

garrison-leach
Download Presentation

Chapter 9

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Chapter 9 Production and Productivity

  2. Gross Domestic Product GDP is the market value of all goods and services produced in a nation’s economy during a given time. It is made up of consumer, investment, and government spending.

  3. Shortcomings of GDP Does indicate the size of a nation’s economy, but does not measure the well-being of a population. It cannot measure accurately changes in production from year to year.

  4. Inflation A rise in prices, meaning, it costs more money to buy the same goods. Between 1960 and 1998, GDP rose 16x. However, there were not 16x more goods produced during that time period.

  5. Productivity Productivity is the output of goods and services as measured per unit of input—time, workers, capital resources, etc. Labor Productivity is the amount the work force can produce in a given time. When productivity rises, people produce more with the same resources.

  6. The Quality of Management New management ideas have been implemented over the last 100 years to improve productivity: Some of these ideas include customer satisfaction, high-quality workmanship, employee involvement, and shared vision.

  7. Capital Resources The free enterprise system has given business owners incentive to risk more money on capital resources. The value of equipment per worker has risen 148% over the last 40 years!

More Related