ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic growth increases state capacity and the supply of public goods. When economies grow, states can tax that revenue and gain the capacity and resources needed to provide the public goods and services that their citizens need, like healthcare, education, social protection and basic public services.

Detailed explanation-2: -Main Benefits of Economic Growth Employment effects – sustained growth stimulates jobs and contributes to lower unemployment rates which is turn helps to reduce income inequality.

Detailed explanation-3: -The relationship between economic growth and unemployment shows that there is a high correlation between the economic growth rate and the decrease in unemployment rates. An increase in the growth rate increases the employment rate or decreases the unemployment rate.

Detailed explanation-4: -The income generated as a result boosts the economy and employment. The type of economic growth (extensive or intensive), is an important factor that determines the rhythm of job creation in relation to economic growth.

Detailed explanation-5: -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.