Chapter 9 Flashcards
what does GDP stand for?
Gross Domestic Product
what is the market value of all goods and services produced in a nation’s economy during a given time?
Gross Domestic Product
what is the period of rising prices when the purchasing power of the dollar is falling?
inflation
what is the measure of the amount of goods and services available to citizens innovation impacts this?
Standard of Living
what is the amount the workforce can produce as measured per unit of input: time, workers, capital resource, etc.
Labor Productivity
what is henry ford famous for?
organized the first assembly line. Made cars available to more people
what does TQM stand for?
total quality management
what are two parts of the total quality management?
- customer satisfaction
- high quality workmanship
- employee envolement
- decision making
- shared vision
what two things can affect productivity
- workers
- quality of management
- quantity and quality of capital resources
- technological changes
what are fixed costs?
are costs that remain the same regardless of how much business a firm does
what are variable costs?
they are those that increase as the number of units produced increases
what says as more variable resources are added to a fixed amount of other resources in an effort to expand production, at some point the amount produced eventually diminishes
law of diminishing return
what are the reductions in cost resulting from large-scale production
economics of scale
what all people 16 years and older who are currently employed or looking for work
labor force
what are two reasons that impact wages
- differences in impact wages
- differences in effort and jobs
- experience
- education and training
