Factors that Lead to Economic Growth mathenyspage的因素导致经济增长mathenyspage.pptVIP

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Factors that Lead to Economic Growth mathenyspage的因素导致经济增长mathenyspage.ppt

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Factors that Lead to Economic Growth mathenyspage的因素导致经济增长mathenyspage

Factors that Lead to Economic Growth Unit 4 Notes Economic Growth There are 4 factors that influence economic growth within a country: Investment in Human Capital Investment in Capital Goods Natural Resources available Entrepreneurship The presence or absence of these 4 factors determine the country’s Gross Domestic Product for the year What is Human Capital? All of the skills, talents, education, and abilities that human workers possess---and the value that they bring to the marketplace Examples: computer/reading/writing/math skills, talents in music/sports/acting, ability to follow directions, ability to serve as group leader cooperate with group members A country’s Literacy Rate impacts Human Capital--the percent of the population over 15 that can read/write How does Human Capital Influence Economic Growth? Nations that invest in the health, education, training of their people will have a more valuable workforce that produces more goods services People that have training are more likely to contribute to technological advances, which leads to finding better uses of natural resources producing more goods What are Capital Goods? All of the goods that are produced in the country and then used to make other goods services Examples: tools, equipment, factories, technology, computers, lumber, machinery, etc. What are some capital goods used in our classroom? How do Capital Goods influence Economic Growth? The more Capital Goods a country has = the more goods services they are able to produce The US has superior capital goods. What are Natural Resources? All of the things found in or on the earth; “gifts of nature” Examples: rivers, minerals, animals, plants, oil, timber, etc. How do Natural Resources Influence Economic Growth? Countries that have a lot of natural resources are able to use them to produce goods services cheaper than a country that has to import natural resources Russia is rich in natural resources, but because of the harsh climate size,