ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It increases
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It decreases
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Either A or B
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None of the above
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Detailed explanation-1: -Advantages of Education for a Country The quantity of educated workers boosts the economy’s production because competent people can execute activities more effectively. Equal education and employment opportunities for people of all genders, races, ages, and ethnicities increase the value of an economy.
Detailed explanation-2: -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-3: -GDP increases when a country has a positive trade balance or surplus. However, GDP decreases when a country spends more money importing goods and products than it makes exporting goods and products, which leads to a trade deficit.