ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Differences in the economic growth rate of nations often come down to differences in inputs (factors of production) and differences in TFP-the productivity of labor and capital resources.

Detailed explanation-2: -Physical factors-some areas have a hostile or difficult landscape. This can make development more difficult. Examples of this are very hot climates or arid (a lack of water) climates which make it difficult to grow sufficient food. Economic factors-some countries have very high levels of debt .

Detailed explanation-3: -With a GDP of 23.32 trillion dollars, the USA is by far the world’s largest economy in this ranking for 2021. It is followed by China in second place with a GDP of 17.73 trillion dollars.

Detailed explanation-4: -GDP matters because it shows how healthy the economy is Rising GDP means the economy is growing, and the resources available to people in the country – goods and services, wages and profits – are increasing.