GDP & Four Productive Resources

GDP and Factors of Production

Capital Goods & Natural Resources

GDP

• The total value of all goods and services produced in one year.

• It's like a giant addition problem that a country does over a year.

• ​Then the sum gets compared to previous years.

GDP per Capita

• ​Average annual salary per person in a country

• To see how much the average person earns in a country, you take the GDP for the country and divide it by the population.

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Multiple Select

When you look to see how much the average person in a country makes, you are looking at the:

• GDP

• GDP per Capita

Natural Resources

• How prevalent natural resources are

  • ​Makes production easier / difficult

• ​Countries with different types of resources

  • ​Easier to produce

  • ​Less importing

Multiple Select

Which country or countries had coal, petroleum (oil), iron ore, and natural gas as natural resources?

• Untied Kingdom

• Germany

• Russia

• Ukraine

Role of Natural Resources in Producing

• Serve as raw materials to create products

• Easily sold and exported for profit

• Wise management by countries key to making a profit.

Capital Goods

• These are the tools used to make products.

• Man Made

• Examples

  • Factories

  • Machines

Multiple Select

Which of the following items would be capital goods in a bakery?

• Mixing Bowl

• Cashier

• Bakery

• Sugar

Role of Capital Goods in Producing

• Countries or companies that buy or invest in capital goods strengthens the economy!

• It updates a country's infrastructure (factories, delivery systems, construction methods)

• The better infrastructure can make better and more 'stuff'.

• The better infrastructure also leads to more services being provided and paid for.​

What Impact Would This Have on GDP

When a country makes more stuff and sells more stuff, its GDP will increase!

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The higher GDP a country has, the stronger its economy!

Multiple Choice

A country provided an incentive to companies that created new factories or updated their existing factories. What factor of production did the country invest in?

• Capital Goods

• Human Capital

• Natural Resources

• Entrepreneurship