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Chapter 7: Q.3 (page 185)

Are there other ways in which we can measure productivity besides the amount produced per hour of work?

Short Answer

Expert verified

The other way of measuring productivity is the level of GDP per worker or GDP per hour.

Step by step solution

01

Definition

Productivity is the efficiency of production. It can be evaluated by estimating the output per hour of work done by the workers. Higher productivity leads to higher economic growth.

02

Explanation

When the resources are used efficiently, it leads to higher economic growth. For measuring the productivity of an economy methods used are Gross Domestic Product (GDP) per hour or Gross Domestic Product (GDP) per worker, other than the amount produced per hour of work.

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Most popular questions from this chapter

Over the past 50 years, many countries have experienced an annual growth rate in real GDP per capita greater than that of the United States. Some examples are China, Japan, South Korea, and Taiwan.

Does that mean the United States is regressing relative to other countries? Does that mean these countries will eventually overtake the United States in terms of the

growth rate of real GDP per capita? Explain.

List some arguments for and against the likelihood of convergence.

How is the concept of technology, as defined with the aggregate production function, different from our everyday use of the word?

What policies can the government of a free-market economy implement to stimulate economic growth?

An economy starts off with a GDP per capita of$5,000. How large will the GDP per capita be if it grows at an annual rate of 2%for 20years? 2%for 40years?

4%for 40years? 6%for 40years?
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