Thursday and Friday we will explore factors that influence economic growth in countries. Students will explore the Gross Domestic Product and why it is important.
To access the interactive diagram of the GDP below, once you get to the web page, click "GDP DIAGRAM" to the right in the article box.
SS6E3. The student will describe factors that influence economic growth and examine their presence or absence in Latin America.
Four Types of Economic Growth
There are three kinds of resources: human resources, capital goods, and natural resources. It is very important for the human resources of a company or country to have a high human capital. These resources help to make goods and services, which increases a country's GDP. An entrepreneur is a person that takes a risk to start a new business or put a new idea to
Human Capital: the technical knowledge and skills that a laborer (human resource) has. Some companies and countries invest in more education and training for their workers. Health care is also important, and some companies or countries provide health care, usually at a fee, for the worker. People who do not have access to education or health care can be put at a disadvantage when
they apply for jobs. Lowering the unemployment rate improves the living conditions for all people in a country.
Capital Goods: resources that are human-made materials used to create a product. Examples of capital goods include factories, machinery, tools, and new technology. Capital goods can help
increase production for a business or country.
Natural Resources: resources that are supplied by nature, such as land, air, water, minerals, and time. Companies that learn to work with the surrounding natural resources, like air and water, are better for the environment. Companies that learn to manage time well can be more productive in the long run.
Entrepreneur: a person who organizes the use of resources to produce goods or services. He or she
thinks of new ideas and is willing to take risks to start a business. Entrepreneurs are decision-makers, and most are interesting in making a profit.
Gross Domestic Product (GDP): the total market value of goods and services produced in a certain country during a specific period of time. Investment in human capital and capital goods can help a country's GDP.
Mrs. Beck's Math and Social Studies Classes