ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an increase in management productivity together with a reduction in the hours worked per employee
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increased educational enrollment together with an increase in business regulation
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the discovery of a new raw material deposit together with significant emigration of labour
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the invention of a technology together with the investment to use it in the economy
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Detailed explanation-1: -Technological change is the most important factor that determine rate of economic growth. It plays a important role than the capital formation. It is the technological change which can bring about continued increase in output per head of the population.
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: -The correct answer is b. The discovery of new technology contributes to economic growth. New technology, especially one which increases production and output, contributes significantly to economic growth. This is because an increase in production or output increases economic growth.
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.
Detailed explanation-5: -In economics, it is widely accepted that technology is the key driver of economic growth of countries, regions and cities. Technological progress allows for the more efficient production of more and better goods and services, which is what prosperity depends on.