ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic growth is heralded as the solution to most problems, from national crises to personal issues, but it’s not without its perils. There are two negative effects of economic growth: resource depletion and ecological collapse.

Detailed explanation-2: -Economic growth may also lead to greater stress on workers. Increase of output may require some people to work for longer hours, some to learn new skills and some to change their job. The net impact of economic growth is influenced by its rate, means adopted to achieve it and distribution of its benefits.

Detailed explanation-3: -Positive economic growth means an increase in money supply, economic output, and productivity. An economy with negative growth rates has declining wage growth and an overall contraction of the money supply. Economists view negative growth as a harbinger of a recession or depression.

Detailed explanation-4: -Economists define four factors of production: land, labor, capital and entrepreneurship. These can be considered the building blocks of an economy. How these factors are combined determines the success or failure of the outcome.