effect on GDP
You spend seven dollars to see a movie
increase
A family buys a TV, what component changes?
consumption
what does a Production Possiblility curves show
different combanations a economy can produce
if workers are distracted and produce less, what happens to productivity
It goes down
A person pays $450 a month to rent an apartment.
increase
The government builds a new road. Which component is affected
Government spending
What is economic growth
an increase in GDP over time
definition of productivity
amount of output per unit of input
A retired man cashes his Social Security check from the government.
no change
You buy a used car, what component changes
none (not counted)
What does a point inside the PPC represent
inefficient use of resources
Why does higher productivity lead to economic growth
more output with the same resources
Worried about consumer confidence, Ford purchases less sheet metal for cars.
no change
A U.S. company builds a factory in another country, what component changes
not counted
Can a country have economic growth without increasing living standards
yes
What determines productivity
Human capital, natural resources, technology
Worried about a recession, people begin saving more money.
decrease
A foreign company builds a factory in the U.S. what component changes
investment
A natural disaster destroys factories. What happens to the PPC
It shifts inward
What are three ways countries can increase productivity
education, technology, better equipment