Productivity and Growth: Crash Course Economics

The video explores why some countries are rich and others are poor, focusing on GDP and GDP per capita as measures of wealth. It discusses factors like natural resources and government effectiveness, emphasizing productivity as a key determinant of wealth. The role of technology in enhancing productivity and economic growth is highlighted, with examples of how connectivity has boosted productivity in the US. The video concludes by noting the importance of productivity in improving living standards globally.

What is GDP per capita used to measure?

• The total GDP of a country

• The number of goods produced in a country

• The average income of a country's citizens

• The happiness index of a country

Which of the following is NOT a reason why some countries are poor?

• Social Darwinist stereotypes

• Inept government

• High GDP per capita

• Lack of natural resources

In the bakery example, what allows John to pay his workers more?

• Increasing the price of donuts

• Buying cheaper ingredients

• Increasing the productivity of workers

• Reducing the number of workers

What is a limitation of using productivity as a measure of wealth?

• It focuses solely on natural resources

• It ignores the number of workers

• It only measures happiness

• It does not account for income inequality

Which of the following is considered a factor of production?

• All of the above

• Human capital

• Technology

• Natural resources

How did the World Wide Web impact productivity?

• It increased the cost of production

• It made computers obsolete

• It allowed computers to communicate, boosting productivity

• It decreased the need for computers

What is the main reason for the increase in living standards in many developing countries?

• Decrease in population

• Improvement in capital and technology

• Increase in natural resources

• Reduction in government size