Wednesday, 7 – 10 – 2015
How to achieve growth
1. The discovery of more natural resources
The discovery of gas and oil has given a number of countries the abiity to increase their total output. Indeed, the discovery of more natural resource, like coal, gold or even new varieties of fruit or cereals, would help any economy to increase output.
2. Investment in capital
Investment or the production of new capital equipment, that is, tools, machinery and factories, is often said to be the key of growth.
3. Technical Progress
New Inventions, better production techniques that produce more efficiency, better organization and management of firms, better training, better transport and communications all come under the banner of technical progress. All these things allow a country to increase output. Progress and investment often go together when old machines are replaced by new, more sophisticated machines that can work faster.
4. Increasing the amount and quality of human resource
Education and training are often called “investment in “Human Capital”. A more skilled and knowledgeable workforce, able to produce more and better goods and services, will result from better education and training.
5. A reallocation of resource
As a country develops, resource tend to move out of primary production and into manufacturing and service where large increases in output have occurred. This has led to economic growth.
- Dan Moynihan & Brian Titey. (2015). Economics, A Complete Course for IGCSE and O Level: University of Cambridge International Examination.
- Google Pict. Natural Resource (Accsess on November 16,2015)
- Google Pict. Investment (Accsess on November 16,2015)
- Google Pict. Efficiently (Accsess on November 16,2015)
- Google Pict. Develop (Accsess on November 16,2015)
Dan Moynihan & Brian Titey. (2015). Economics; A Complete Course for IGCSE and O Leel. 2015. hlm 326