4 Factors of Economic Growth

What is GDP (Gross Domestic Product)?

• a person who takes a risk to start a new business

• the value that people bring to the workforce

• the total amount of goods and services produced in a country in one year

• tools that make other goods

What are natural resources

• the value that people bring to the work force

• tools that make other goods

• a person who takes a risk to start a new business

• materials that are a source of wealth - gifts from the earth

What is the impact of having natural resources on a country's GDP?

• If you have better machines, you will be more productive and make more money

• the total amount of goods and services produced in a country in one year

• more natural resources allows you to make more goods. more goods equals more profit, and more profit equals an increase in GDP

• tools that make other goods

What is the impact of lacking natural resources on a country's GDP?

• You would have to import the natural resources which could be expensive so GDP would decrease

• You would have to export the natural resources which could be expensive so GDP would increase

• If you invest money, you will make more money and then GDP would increase

What is human capital?

• Materials that are a source of wealth - gifts from nature

• the value that people bring to the work force

• tools that make other goods

What are the two ways you can invest in human capital?

• education and training

• training and capital goods

• education and healthcare

How does human capital influence GDP?

• good education and better health care will lead to a better worker who can efficiently produce which leads to a profit which leads to a higher GDP

• if you have better machines, you will be more productive and make more money

• if you invest money, you will make more money and then GDP will increase

What are capital goods?

• tools that make other goods

• gifts from nature

• value that people bring to the work force

What does it mean to invest?

• to put in time, money, or energy in the hopes that something better will come out of it

• education and healthcare

• a person who takes a risk to start a new business

Why would a business invest money in capital goods?

• if you invest money, you will make more money

• if you have better machines, you will be more productive and make more money

• more natural resources allows you to make more goods