ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Standard of living improvement
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Increased road congestion
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Labour supply
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Factor endowment
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Increased tax revenue
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Detailed explanation-1: -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-2: -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.
Detailed explanation-3: -Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce. Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.
Detailed explanation-4: -Accumulation of capital stock. Increases in labor inputs, such as workers or hours worked. Technological advancement. 01-Jun-2015