Productivity and Growth: Crash Course Economics #6

Why do economists often use GDP per capita to measure a country's wealth instead of just GDP?

• GDP per capita is easier to calculate.

• GDP per capita accounts for the country's population size.

• GDP per capita only includes goods, not services.

• GDP per capita is a measure of happiness.

Which of the following factors is NOT considered a primary determinant of a country's wealth by economists, as discussed in the video?

• Natural resources

• Government competence and corruption

• Racial or social Darwinist stereotypes

• Productivity

In economics, what is the most accurate definition of productivity?

• The total market value of all goods and services produced in a country.

• The ability to produce more output per worker per hour.

• The amount of natural resources a country possesses.

• The level of happiness among a country's citizens.

How does increased productivity generally benefit a country's economy and its workers?

• It leads to a decrease in the overall GDP.

• It allows for the creation of more goods and services and higher incomes.

• It primarily benefits only the business owners, not the workers.

• It reduces the need for natural resources.

What does it indicate when a country's GDP per capita steadily increases for decades, but its median family incomes remain largely unchanged?

• The country is experiencing a period of economic equality.

• The benefits of economic growth are not evenly distributed among the population.

• The country's overall productivity is declining.

• The cost of living has significantly decreased.

Which of the following best describes human capital in an economic context?

• The natural resources available in a country.

• The machinery, factories, and infrastructure used in production.

• The education, knowledge, and skills of the workforce.

• The total monetary value of goods and services produced by a country.

How does improving technology differ from increasing capital in its impact on a country's productivity?

• Increasing capital is always more effective than improving technology.

• Improving technology can increase output using the same resources, while increasing capital often requires more resources to produce and maintain.

• Both increasing capital and improving technology always have a high cost.

• Technology primarily affects the quantity of goods, while capital affects their quality.

What significant change in computer usage led to a boom in productivity in the United States starting around 1995?

• The introduction of more powerful individual computer units.

• The widespread adoption of the World Wide Web, enabling computers to communicate and share information.

• A decrease in the cost of computer hardware.

• The development of new operating systems that required less user input.