ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -INDICATOR (a) Name: Investment Share in Gross Domestic Product (GDP). (b) Brief Definition: This indicator refers to the share of investment in total. production. It is obtained by calculating gross capital formation as percentage of gross domestic product.

Detailed explanation-2: -when countries invest in capital goods, they are providing better facilities, resources, and/or materials for the people who perform the labor, which creates a more productive workforce leading to greater economic growth (higher GDP).

Detailed explanation-3: -Human capital affects economic growth and can help to develop an economy by expanding the knowledge and skills of its people. The level of economic growth driven by consumer spending and business investment determines the amount of skilled labor needed.

Detailed explanation-4: -Investment is the dynamic element of Gross Domestic Product (GDP), the only one that allows domestic production to increases and with it employment. It impacts the consumer and government spending, the latter through increased tax revenues.