Question

List and define the four factors of economic growth. How does each of these influence economic growth? Give as many details as possible.

Answer 1

Ans. The four factors of economic growth are :-

1. Land.

2.Labor.

3. Capital.

4.Entrepreneurship.

These are the four factors which influence the economic growth .

1) Land :-  It is an intrinsic asset which is used or we can say like which is required for the production of goods and services. It provides us with many resources such as:- silver, copper, oil, gases

2) Labor:-  It comprises of those individuals that are accountable for the production of goods and services. Rapid increase in the economic growth gives rise to an increase in the stipulation of goods and services which can generate a multitude of new jobs chances for workers.

3) Capital:- It refers to the asset goods namely:- tools, manufacturing plants , etc. Or any apparatus used in for the process of making goods.

4).Entrepreneurship :- This factor of economic growth includes the creativity and pioneers behind the entire making process. These business persons amalgamate all the factors of production for generating service.

All these above mentioned four factors have straight effect on the value of goods and services. Any growth in production lead the way towards the economic growth of the country and that is calculated by GDP.

Hope it will help.

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