ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increase in per capita production
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Increase in per capita real income
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Structural change in the economy
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All of the above
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Detailed explanation-1: -An increase in the amount of goods and services produced per head of the population over a period of time is called economic growth. It includes increase in per capita production, per capita real income and structural change in economics.
Detailed explanation-2: -It is measured in terms of improvement in the production of goods and services along with enhancement in quality of life within a country compared to previous years.
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: -Economic growth is the increase in the capacity of the economy to produce more of goods and services as compared to the previous year. It can be calculated as the percentage increase in the GDP of a country.
Detailed explanation-5: -The answer to this question is C. Economic growth is a long-run process resulting from the compounding of many events.