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Define economic growth,its types,features and factors affecting it?
Anonymous
Jan 14
Define economic growth,its types,features and factors affecting it?
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Jan 14
Economic growth refers to an increase in the production and consumption of goods and services in an economy over a specific period of time. It is typically measured by the increase in the Gross Domestic Product (GDP) of a country.
Types of Economic Growth:
1. Extensive Growth: This type of growth occurs when there is an increase in the quantity of resources, such as labor and capital, leading to an expansion of production possibilities.
2. Intensive Growth: This type of growth occurs when there is an improvement in the quality of resources, such as technological advancements or increased efficiency, leading to higher productivity and output.
Features of Economic Growth:
1. Increase in GDP: Economic growth is characterized by an increase in the overall output of goods and services in an economy, as measured by GDP.
2. Rise in Per Capita Income: Economic growth often leads to an increase in per capita income, indicating a higher standard of living for the population.
3. Expansion of Employment Opportunities: Economic growth is typically associated with the creation of new jobs and reduced unemployment rates.
4. Improved Infrastructure: Economic growth often results in the development of infrastructure, such as roads, bridges, and utilities, which supports further economic activities.
5. Technological Advancements: Economic growth is often driven by technological progress, leading to increased productivity and innovation.
Factors Affecting Economic Growth:
1. Investment: Higher levels of investment in physical capital, such as machinery and equipment, and human capital, such as education and training, can contribute to economic growth.
2. Technological Progress: Advancements in technology can lead to increased productivity and efficiency, driving economic growth.
3. Natural Resources: The availability and efficient utilization of natural resources can impact economic growth, particularly in resource-rich countries.
4. Government Policies: Favorable government policies, such as infrastructure development, tax incentives, and trade liberalization, can stimulate economic growth.
5. Political Stability: A stable political environment encourages investment and economic activities, promoting growth.
6. Demographic Factors: Factors such as population growth, age structure, and labor force participation rates can influence economic growth.
7. External Factors: Global economic conditions, international trade, and foreign direct investment can impact a country's economic growth.
Types of Economic Growth:
1. Extensive Growth: This type of growth occurs when there is an increase in the quantity of resources, such as labor and capital, leading to an expansion of production possibilities.
2. Intensive Growth: This type of growth occurs when there is an improvement in the quality of resources, such as technological advancements or increased efficiency, leading to higher productivity and output.
Features of Economic Growth:
1. Increase in GDP: Economic growth is characterized by an increase in the overall output of goods and services in an economy, as measured by GDP.
2. Rise in Per Capita Income: Economic growth often leads to an increase in per capita income, indicating a higher standard of living for the population.
3. Expansion of Employment Opportunities: Economic growth is typically associated with the creation of new jobs and reduced unemployment rates.
4. Improved Infrastructure: Economic growth often results in the development of infrastructure, such as roads, bridges, and utilities, which supports further economic activities.
5. Technological Advancements: Economic growth is often driven by technological progress, leading to increased productivity and innovation.
Factors Affecting Economic Growth:
1. Investment: Higher levels of investment in physical capital, such as machinery and equipment, and human capital, such as education and training, can contribute to economic growth.
2. Technological Progress: Advancements in technology can lead to increased productivity and efficiency, driving economic growth.
3. Natural Resources: The availability and efficient utilization of natural resources can impact economic growth, particularly in resource-rich countries.
4. Government Policies: Favorable government policies, such as infrastructure development, tax incentives, and trade liberalization, can stimulate economic growth.
5. Political Stability: A stable political environment encourages investment and economic activities, promoting growth.
6. Demographic Factors: Factors such as population growth, age structure, and labor force participation rates can influence economic growth.
7. External Factors: Global economic conditions, international trade, and foreign direct investment can impact a country's economic growth.
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