Google
Friday 
January 18, 2019 

AmosWEB means Economics with a Touch of Whimsy!

AmosWEBWEB*pediaGLOSS*aramaECON*worldCLASS*portalQUIZ*tasticPED GuideXtra CrediteTutorA*PLS
TOTAL PRODUCT AND MARGINAL PRODUCT: A mathematical connection between marginal product and total product stating that marginal product IS the slope of the total product curve. If the total product curve has a positive slope (that is, is upward sloping), then marginal product is positive. If the total product curve has a negative slope (downward sloping), then marginal product is negative. If the total product curve has a zero slope (horizontal), then marginal product is zero. Moreover, if the total product curve has a positive and increasingly steeper slope, then the marginal product is positive and rising. If the total product curve has a positive and decreasingly steeper slope, then the marginal product is positive but falling.

Visit the GLOSS*arama


ECONOMIC GROWTH, PRODUCTION POSSIBILITIES:

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.
Production possibilities, which analyzes the alternative combinations of two goods that an economy can produce with given resources and technology, indicates economic growth with an outward shift of the production possibilities curve. The general method of achieving economic growth is by increasing the quantities or qualities (Q and Q) of the resources.

The Growth Process

Shifting The Curve
Economic growth is demonstrated by an outward shift of the production possibilities curve. The curve presented in the exhibit to the right shows the production possibilities tradeoff between crab puffs on the vertical axis and storage sheds on the horizontal axis.

With existing resources and technology, the economy can produce any combination of crab puffs and storage sheds up to or on the production possibilities curve. However, it cannot produce any combination of production beyond the curve, such as point M.

While point M cannot be reached today with existing resources and current technology, it can be reached tomorrow through economic growth. Growth expands the frontier, causing it to shift outward.

To illustrate the process of economic growth, click the [Growth] button. Point M can be reached when economic growth expands the frontier. Once the process is completed, point M lies ON the new production possibilities curve. Another success story achieved through the miracle of economic growth.

Resource Quantities

One of two ways to achieve economic growth is by increasing resource quantities. Three notable resource quantity options are:
  • Labor: The quantity of labor can be increased through:
    • Natural population growth.
    • Immigration from other nations.
    • More participation and fewer nonworkers.

  • 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

The other way to achieve economic growth is to increase resource qualities. Two important resource quality options are:
  • 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 concerning the production of goods and services. Better technology enables more production. Technology concerns all aspects of production, but it is often seen as an improvement in the quality of capital.

<= ECONOMIC GROWTHECONOMIC GROWTH, SOURCES =>


Recommended Citation:

ECONOMIC GROWTH, PRODUCTION POSSIBILITIES, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2019. [Accessed: January 18, 2019].


Check Out These Related Terms...

     | economic growth, sources | full employment, production possibilities | unemployment, production possibilities | derivation, production possibilities curve | slope, production possibilities curve | opportunity cost, production possibilities | investment, production possibilities | law of increasing opportunity cost |


Or For A Little Background...

     | economic growth | production possibilities | production possibilities curve | assumptions, production possibilities | technical efficiency | graphical analysis | limited resources |


And For Further Study...

     | economic efficiency | efficiency | economic goals | seven economic rules | free lunch | three questions of allocation | four estates | government functions | political views | scarcity | technology | investment | business cycles | gross domestic product | labor force participation rate | structural unemployment | aggregate market | aggregate supply increase, long-run aggregate market | aggregate supply determinants | capital stock, aggregate supply determinant |


Search Again?

Back to the WEB*pedia


APLS

PINK FADFLY
[What's This?]

Today, you are likely to spend a great deal of time looking for a downtown retail store trying to buy either a how-to book on the art of negotiation or a flower arrangement for your aunt. Be on the lookout for neighborhood pets, especially belligerent parrots.
Your Complete Scope

This isn't me! What am I?

Lewis Carroll, the author of Alice in Wonderland, was the pseudonym of Charles Dodgson, an accomplished mathematician and economist.
"Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover."

-- Mark Twain

AR
Average Revenue, Autoregressive
A PEDestrian's Guide
Xtra Credit
Tell us what you think about AmosWEB. Like what you see? Have suggestions for improvements? Let us know. Click the User Feedback link.

User Feedback



| AmosWEB | WEB*pedia | GLOSS*arama | ECON*world | CLASS*portal | QUIZ*tastic | PED Guide | Xtra Credit | eTutor | A*PLS |
| About Us | Terms of Use | Privacy Statement |

Thanks for visiting AmosWEB
Copyright ©2000-2019 AmosWEB*LLC
Send comments or questions to: WebMaster