A hike in labor productivity leads to growth in a worker’s capital amount. A production process depending on hand carved tools and designing amazing items have good productive growth. But it cannot be better than the production processes which have huge number of capital per worker. This fund gathering related to textile factories, steel mills, farms, chemical plants, insurance companies and banks, iron foundries, shopping malls, coal mines, auto plants, chemical plants, building sites have huge labor productivity. This has also contributed to our economy.
If you want to understand about amount of capital invested in anappropriate manner, make sure to look for a movie which is either set in colonial times or at Old West.
Links of Previous Main Topic:-
- Definition of Economics
- Economic Problem
- Market Equilibrium
- Employment and Unemployment
- Economic Growth Macroeconomics
- The Basics of Economic Growth
Links of Next Macroeconomics Topics:-
- Human Capital Growth
- Technological Advances
- Growth Theories Evidence and Policies
- Classical Growth Theory
- Neoclassical Growth Theory
- New Growth Theory
- New Growth Theory Versus Malthusian Theory
- Sorting Out the Theories
- The Empirical Evidence on the Causes of Economic Growth
- Economic Growth Macroeconomics
- Policies for Achieving Faster Growth
- The Exchange Rate and the Balance of Payments
- The Dollar and Carry Trade
- Expenditure Multiplier Know the Keynesian Model
