Preview

Raising Productivity Is Important for Unlocking the Economic Potential of a Country

Good Essays
Open Document
Open Document
1098 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Raising Productivity Is Important for Unlocking the Economic Potential of a Country
In this fast paced economy, raising productivity is essential to the economic growth of country.

Every country has it 's limitations on resources and the only way to raise productivity on the fixed amount of resources is through maximising the usage of resources efficiently. Economic growth is the process of increasing the economy 's ability to produce goods and services. It is achieved by increasing the quantity or quality of resources. This process can be illustrated as an outward shift of the production possibilities curve. (AmosWEB*LLC, 2013)

Production Possibility curve (PPC) shows the maximum combinations of goods and services that can be produced by an economy in a given time period with its limited resources. Production Possibility Curve, (Anon. n.d.)

Dynamic Economic Graphs, [image online] Avaliable at: http://www.dineshbakshi.com/igcse-gcse-economics/basic-economic-problem/revision-notes/1261-production-possibility-curve [Accessed 22 May 2013]

As mentioned, increasing the quantity or quality of resources helps to achieve economic growth.

AmosWEB*LLC (2013) states that it can be done via these ways:

“Resource Quantities:

Labor – The quantity of labor can be increase through natural population growth, immigraton from other nations, more participation and fewer non workers.

Capital – The key to getting more capital is investment, giving up satisfaction today to get capital tomorrow.

Materials – The key to increasing the quantities of materials is through exploration. Exploration is best illustrated by digging or drilling into the Earth 's crust in search of mineral or fossil fuel deposits.
Resource Qualities:
Education - Education increases the quality of labor resources. Better educated workers are more productive workers. Education includes both formal, sitting-in-a-classroom learning and informal, on-the-job-training experience.
Technology - Technology is the knowledge and information society as a whole possesses



References: AmosWEB*LLC , 2013. ECONOMIC GROWTH, PRODUCTION POSSIBILITIES. [ONLINE] Available at:http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=economic+growth,+production+possibilities. [Accessed 21 May 2013]. dineshbakshi.com, n.d., Production Possibility Curve. [ONLINE] Available at:http://www.dineshbakshi.com/igcse-gcse-economics/basic-economic-problem/revision-notes/1261-production-possibility-curve. [Accessed 22 May 2013]. GDP: The market value of final goods and services, newly produced WITHIN a nation during a fixed period. n.d. [ONLINE] Available at:http://www.princeton.edu/wwac/academic-review/files/512Notes.pdf. [Accessed 22 May 2013]. Hu. Z, Khan. M.S, 1997. Why Is China Growing So Fast?. [ONLINE] Available at:http://www.imf.org/external/pubs/ft/issues8/. [Accessed 22 May 2013]. NICK. 2013. GDP Growth Depends Heavily On Productivity Growth. [ONLINE] Available at:http://www.floatingpath.com/2013/05/03/gdp-growth-depends-heavily-on-productivity-growth/. [Accessed 22 May 2013]. Bibliography mjm foodie, 2013. Macroeconomics Modules [video online] Avaliable at: https://www.youtube.com/playlist?list=PLF2A3693D8481F442 [Accessed 18 May 2013] Parkin, M. (2012): Economics, 10th Edition, USA, Pearson

You May Also Find These Documents Helpful

  • Powerful Essays

    Hw #1 for Econ 471

    • 1872 Words
    • 8 Pages

    The table above documents the average annual GDP per capita growth of 4 countries that grew very rapidly and 4 that were growth disasters between 1995 and 2005.…

    • 1872 Words
    • 8 Pages
    Powerful Essays
  • Good Essays

    Study Guide Ch. 1-5

    • 6679 Words
    • 38 Pages

    Productivity growth helps american businesses to compete more effectively with other nations, it takes fewer workers to produce more and that results in reduced costs, more in earned profit and sell their product for less.…

    • 6679 Words
    • 38 Pages
    Good Essays
  • Good Essays

    Eco 372 Week 1 Dq1

    • 1399 Words
    • 6 Pages

    There are many factors that affect the real GDP such as interest rates, consumer's confidence in spending and/or asset prices. When it comes to interest rates, the lower the rate the less expensive it is to borrow, which encourages spending. For example, those individuals who have a mortgage to pay will have a lower payment; however, when there is a low to no interest rate, it leaves lenders feeling less confident and unable to grow. Another factor would be the confidence of the buyer; and in my opinion, this is one of the more critical factors affecting the GDP. In order for the economy to grow, the spender and seller must have the confidence to provide and purchase goods. Should either or be unsure it will reduce spending and in turn offer more to the economy. Asset prices, or the rise in housing, is another factor affecting the real GDP that has the potential for creating a positive wealth effect. The wealth effect refers to the increase in spending along with an increase in perceived wealth.…

    • 1399 Words
    • 6 Pages
    Good Essays
  • Good Essays

    Outline major factors that lead to growth (include definitions, description or example) and for each, list government policies that may encourage each one.…

    • 544 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The flaws of GDP are essential when learning about public policy, but it lean to be a good pointer, for the economic growth in the long run. Economic growth is exponential, where the supporter is resolute by the PPP annual GDP increase rate. Therefore, the differentiation in “the annual growth from country A to country B will multiply up over the years. For example, a growth rate of 5% seems similar to 3%, but over two decades, the first economy would have grown by 165%, the second only by 80%” (GDP Growth Definition, n.d., para3).…

    • 799 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    References: Anonymous. 2010. ‘Can China Become the World’s Engine for Growth?’. The International Economy. 24(1): 8-36.…

    • 1673 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Economic growth results from producing more goods and services (not from redistributing existing income), and that requires productivity growth and growth in the labor supply. A government's impact on economic growth is, therefore, determined by its policies' effect on labor productivity and labor…

    • 533 Words
    • 3 Pages
    Good Essays
  • Best Essays

    Economics & the Rest

    • 1458 Words
    • 6 Pages

    The purpose of this research report is to provide an overview of China’s economic growth in relation to the long term economic growth drivers. Critical assessment will be made on the growth drivers to determine whether they lead to long term economic growth.…

    • 1458 Words
    • 6 Pages
    Best Essays
  • Good Essays

    Growth Rates

    • 1018 Words
    • 4 Pages

    There are three categories of factors that contribute to a low or high growth rates. These categories are the demand factor, the efficiency factor, and supply factors. Government spending or exports can lead to a higher to aggregate demand and higher economic growth. “Economic growth requires increases in total spending to realize the output gain made available by increased production capacity” (McConnell, 2012, p. 513). One way to accomplish this is by lowering interest rates. Lower interest rates make borrowing cheaper. This encourages consumers to spend more money. Efficiency is attained when resources are used “…in the least costly way to produce the specific mix of goods and services that maximizes people’s well-being” (McConnell, 2012, p. 513). For example, when human resources are not being used to their full potential unemployment will increase. As unemployment increases, total spending will decrease. This will lower growth rates. Supply factors such as increases in natural resources, increases in human resources, increases in the supply of capital goods, and improvements in technology create a higher economic growth rate (McConnell, 2012, p. 512).…

    • 1018 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Discussion

    • 473 Words
    • 2 Pages

    You can see that over the years the growth rate can grow or decline. There was a decline from 2007 to 2009 compared to previous years but I came back up in 2010. In my opinion it looks that the growth rates pretty much stays between a certain percentages with the exception of the three years we showed decline. So I would say according to the number the GDP hasn’t been growing or declining. It just seems like it is holding steady.…

    • 473 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Outline how the production possibility frontier can be used to demonstrate opportunity cost and examine how the effects of unemployment and technical change on production in the economy.…

    • 710 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Lesson: Modern Japan

    • 952 Words
    • 4 Pages

    SS-HS-3.4.2 Students will describe and give examples of how factors such as technological change, investments in capital goods and human capital/resources have increased productivity in the world. DOK 2…

    • 952 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    1 Driven by additional workers joining the workforce due to demographics and increased participation in workforce; productivity…

    • 8149 Words
    • 33 Pages
    Powerful Essays
  • Better Essays

    Basic Elements

    • 1444 Words
    • 6 Pages

    For insight into the factors that explain economic growth and development in Niger and other countries, visit the economic growth section of our global economy guide.…

    • 1444 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    endorsement by the APO of any such expressed opinion, nor is it affirmation of the…

    • 76194 Words
    • 305 Pages
    Powerful Essays