Economic Notes 01.24.

24

Compare Wealthy and Non-Wealthy Countries

Wealthy Not Wealthy
- Saudi Arabia: $23,000- - Afghanistan: $300- 62yrs
- China: $24,000- - Tanzania: $1,000-
- Norway: $103,000- - Uganda: $883-
- Switzerland: $91,000- - Haiti: $1,800-
- Germany: $51,000-

Trade off = Choice

Opportunity Cost = What are you missing out on!
G.D.P = Gross Domestic Product
Final Sale of all goods & services in a year.

3 FAQ
1.) What to produce?
2.) How to produce?
3.) Who to produce for?

Factors of Production
Capital
Entrepreneurship
Land
Labor
 Economic Growth
Vocabulary
 Productivity – This shows the data of the performance financially and
compares the goods and services produced(output) among the
amount of inputs used to create the goods and services. (How much
is produced)
 Specialization - The soul focus that the company will decide on
between their focus of their labor and what their specific type of
production. (What we’re good at)
 Division of Labor – The separation of work process into several tasks,
and how each task is performed by one person or a group of people.
(The separation of tasks in a production)
 Human Capital – The financial/economic value of a worker’s abilities
and skills. (Our knowledge and skills to do our jobs)
 Economic Interdependence – Where two or more companies depend
on each other for exchange of goods and will fulfill each other’s
necessities. (One or more parties who depend on each other for goods
or necessities)