ECO 1102 Lecture Notes - Lecture 6: Foreign Portfolio Investment, International Monetary Fund, Diminishing Returns

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: Octavian Strimbu

Document Summary

Eco1102 - lecture 6 - production and growth. Productivity refers to the quantity of goods and services that a worker can produce for each hour of work. Y = real gdp = quantity of output produced. When a nation"s workers are very productive, real gdp and incomes are high. Productivity is the key determinant of living standards. Growth in productivity is the key determinant of growth in living standards. For a country to enjoy a high standard of living, it must produce a large quantity of goods and services. The stock of equipment and structures that are used to produce goods and services. The knowledge and skills that workers acquire through education, training and experience. The inputs into the production of goods and services that are produced by nature, such as land, rivers, and mineral deposits. Society"s understanding of the best ways to produce goods and services.