Vocab

Productivity and Economic Growth Economic growth occurs when a republics total getup of goods and services increases over time. This means that the rotary shine in finger 1.3 becomes larger, with more factors of production, goods, and services flowing in ane direction, and more payments flowing in the opposite direction. A fleck of factors are responsible for economic growth, but productiveness is the most important. Productivity Everyone benefits when peculiar resources are used efficiently. This is described by the term productivity, which is a measure of the gist of output produced by a given gist of inputs in a specific period of time. Productivity goes up whenever more output can be produced with the same amount of inputs in the same amount of time. For example, if a company produced 500 units of a product in one period, and if it produced 510 in AT E C O N O M I C S A T A G L A N C E Figure 1.

3 The Circular Flow of Economic Activity Business Income Consumer Spending Payments for Resources Income from Resources Goods Services Goods Services Buy Productive Resources Land Capital Labor Entrepreneurs Product Markets Factor Markets Individuals $ $ $ $ Businesses Using Charts The circular flow diagram shows the high degree of economic interdependence in our economy. In the diagram, the factors of production and the products made from them flow in one direction. The payments for the factors, which consumers spend on goods and services, flow in the opposite direction. As a consumer, what role do you play in the circular flow of economic action mechanism? the next period with the same number of inputs, then productivity went up. Productivity is often discussed in terms of labor, but it applies to either factors of production. For this reason, business owners smack to buy the most efficient capital goods, and farmers try to use the most fertile land for their crops. category of Labor and Specialization Division of... If you want to get a full essay, order it on our website: Ordercustompaper.com

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