ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The rate of growth of the labour force
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b)The proportion of national income saved and invested
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c) The rate of technological improvements
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d) All of the above
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Detailed explanation-1: -Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth.
Detailed explanation-2: -There are three main factors that drive economic growth: Accumulation of capital stock. Increases in labor inputs, such as workers or hours worked. Technological advancement.
Detailed explanation-3: -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-4: -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-5: -Economic development of a country depends on all three factors: natural resources, capital formation and market size.