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Econ251

In: Business and Management

Submitted By Rachaelmm
Words 281
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TOPIC
1.

1

In your own words, explain what is meant by the concept of economic growth.

In my own words, concept of economic growth indicates that the economy of a country's gross domestic product (GDP) has rising. A country's GDP is the total monetary value of the goods and services produced by that country over a specific period of time. In other words, gross domestic product is an economic model that reflects the value of a country's output. When the GDP increases, it shows that the country's economy is getting better, signals a wealthier economy, and increased prosperity. There is increased production, which means increased profits for the production companies. Increased production also translates to increased tax collection for the govefirment and, reduced unemployment levels, and "better prospects for the eCOnOmy. Gl)p : I .- , {, ' ,' 'ri '/, ..1. nt CUP ij not,c^c\.Jh,,t" l'- ttc'."",,';i t ;,r1,"{h. r 'r.,:\ ;'-'-,'ll:.'.

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Factors that determine a counto:, oro ;.
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resources such as land and river. human capital such as labor, capital goods such as
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tools, equipment, machines, factories. And lastly, technological knowledge. In order for a country to have a positive increasing GDP, it must have a lot of natural resources that enable them to produce goods and services cheaper than other countries whose have to import naturalresources, invest in human capital through education and training in order to have more valuable workforce, and it must produce goods that have value to be sold within or exported with capital goods and have technological knowledge.

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ln your own words, explain what is meant by the concept of economic

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Words: 438 - Pages: 2