economic growth
ASSIGNMENT ON ECONOMIC GROWTH
DEFINATION: An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.
Causes of economic growth: Economic growth does not have a set recipe. it is evident that different countries grow at different rates and for different reasons. Every country economy is build differently.
Possible causes of economic growth:
* Improvement to the labor force:
1) Improvement to the quality and quantity will allow for long term economic growth through a rise in productivity.
2) Increase in the quantity and quality of human resource
3) Increase in supply of capital goods.
4) If we give new machinery to labor then the production will increase and economy will grow.
* Increase in total demand:
Demand can come from number of sources. This is a short term cause as once an economy is at full capacity no more can be produced.
* Progression in technology
As technology gets better it can lead to an economy being more productive which will fuel economic growth.
* Investment
This will fuel economic growth but the actual source of the growth would be new capital goods e.g. machines.
Negative effects of economic growth: some people are non followers of economic growth according to their point of view, due to economic growth there will be more industrialization means there will be more pollution and global warming. This group also argues that poverty can not be reduced with economic growth but it can be reduced with the equal distribution of wealth. Following points will support their point of view.
1) Increase in crime and social problems:
It is the paradox that as income increases and people are better off the level of crime has increased as well because the crimes are not motivated by poverty but perhaps envy. One reason that why crime rates increases is that quite simple there are more things to steal. For example
DEFINATION: An increase in the capacity of an economy to produce goods and services, compared from one period of time to another.
Causes of economic growth: Economic growth does not have a set recipe. it is evident that different countries grow at different rates and for different reasons. Every country economy is build differently.
Possible causes of economic growth:
* Improvement to the labor force:
1) Improvement to the quality and quantity will allow for long term economic growth through a rise in productivity.
2) Increase in the quantity and quality of human resource
3) Increase in supply of capital goods.
4) If we give new machinery to labor then the production will increase and economy will grow.
* Increase in total demand:
Demand can come from number of sources. This is a short term cause as once an economy is at full capacity no more can be produced.
* Progression in technology
As technology gets better it can lead to an economy being more productive which will fuel economic growth.
* Investment
This will fuel economic growth but the actual source of the growth would be new capital goods e.g. machines.
Negative effects of economic growth: some people are non followers of economic growth according to their point of view, due to economic growth there will be more industrialization means there will be more pollution and global warming. This group also argues that poverty can not be reduced with economic growth but it can be reduced with the equal distribution of wealth. Following points will support their point of view.
1) Increase in crime and social problems:
It is the paradox that as income increases and people are better off the level of crime has increased as well because the crimes are not motivated by poverty but perhaps envy. One reason that why crime rates increases is that quite simple there are more things to steal. For example