Productivity: the Key to Increasing a Country

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Productivity the Key to Increasing a Countrys
Income
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1. Why are some nations poor and some wealthy?

• Wealthy nations produce (per capita) more goods
  and services

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2. Define productivity.

• Productivity output input
• Measures how much output (goods services) is
  produced compared to input (productive resources)
  used

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3. Mr. Navarro owns a 10 acre corn farm in
Mexico. He gets 52 bushels of corn from each acre
of land.

• a) What is the overall corn output of this farm?
• 520 bushels of corn
• b) What are some of the inputs Mr. Navarro used
  in his corn production?
• Land, water, labor, capital equipment (plow,
  combine, etc.)
• c) What is the corn productivity of his farm?
• 52 bushels per acre

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3. Mr. Navarro owns a 10 acre corn farm in
Mexico. He gets 52 bushels of corn from each acre
of land.

• d) Give a numerical example of an increase in
  productivity on this farm.
• Anything greater than 52 bushels per acre would
  be an increase in productivity
• e) Describe 3 specific ways that Mr. Navarro
  could increase the productivity of his corn
  production.
• Better seeds, better equipment, fertilizer, more
  knowledge of farming from training/education,
  harder work, installation of an improved
  irrigation system

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4. True or False?

• a) When one country becomes wealthier, another
  country becomes poorer.
• False
• b) Countries are poor mainly b/c they lack
  natural resources.
• False
• c) A large population cause a country to be
  poor.
• False

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MAIN IDEAS - 3 main ways to increase productivity
(GDP)

1. Increase amounts of Capital Resources workers
   must have enough tools (ex. hands vs. shovels)
2. Improvements in Technology better tools (ex.
   shovel vs. tractor camel vs. truck)
3. Improvements in Quality of Labor (human capital)
   education training increases a workers
   skills (ex. nurse vs. doctor substitute vs.
   teacher)

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PART 2

• Comparing Education Levels GDP

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Part A

• Identify
• 5 low-income
• 5 middle or high-income countries

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1) What patterns or relationships do you see in
your data? Explain.

• Education levels per capita GDP have a direct
  relationship
• Countries with very low percentages of secondary
  education enrollment tend to have low levels of
  per capita GDP
• Countries with high percentages of secondary
  education enrollment tend to have higher levels
  of per capita GDP

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2) Why do you think it is difficult raising the
educational levels of people living in low-income
countries?

• It is difficult because education is costly it
  requires scarce productive resources. Also in
  some situations, people in poorer countries may
  not value education as much as in wealthier
  countries. For example, parents may want their
  children to help with farming or the family
  business instead of getting a formal education.

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3) Pick a country from your map. Give them 3
pieces of advice on how to raise their
productivity, and therefore their GDP.

1. Increase Capital Resources workers must have
   enough tools
2. Improve Technology better tools
3. Improve Quality of Labor (human capital)
   education training increases a workers skills