Question

Question 6.
List the factors that determine productivity and explain the policies that promote economic growth If you were an economic advisor to North Korea (DPRK) what policies would you recommend for the economic growth of North Korea? Recommend three policies and explain the reasons why you choose them.(20 points)

Answer 1

Discuss About North Korea There Govt. decide What to Produce or Manufacture? , How much should produce? , And the price of product?

So this things is Barriers of North Korea Economic Growth,

North Korea known as Demographic Peoples Republic Nation., And cause of there policies its created barriers for North Korea Economic Growth.

In 1997 North Korea Was in Economic Crises., Cause of their Govt. Policies.

So as a Economic Advisor recommend to North Korea they have to Increase Productivity in manufacturing or production sector, it will help to increase GDP rate of North Korea,

In productivity there are some important factors which help to North Korea for increase Economic growth such as

1.Labour

2.Land

3.Capital Facilities

1.Labour

These are Three important factors of productivity, if North Korea have to utilisation of productivity factors in their country and government or policy maker have to increase Productivity, which directly impact on labour income, if they do it, then income per capita is increased and it will help to increase GDP rate an economic growth of North Korea,

Productivity always help to decrease Poverty of North Korea and any country poverty is issue for their economy, because of that North Korea have to increase productivity which will increase income or wages of poor person or labours and it automatically help to increase economic growth of North Korea.,

Same as if North Korea government decide what to produce? how much to produce? and what is the price of produced product?

Then there are limitation for production as per government rules and it can be barriers for growth,

Because of that productivity decrease and labour can’t get employment, and increase Employment rate, which directly impact on GDP and economic growth of North Korea so North Korea have to remove these barriers and increase productivity to provide better employment to their labours.

2.Land

Another important factor of productivity is Land, land utilisation for farming/Agriculture also beneficial for generating income of nation and help to provide employment to their labours, North Korea, Increase in agricultural intervention by north Korea Individuals and help to increase land productivity which will provide income to their family and also Help to Increase in Economic Growth., Government have to promote their public for farming. And Have to increase Land Productivity.

3.Capital Facilities

Another important factor of productivity have to implement by North Korea to increase economic growth Is Capital Facilities expand economic growth GDP of North Korea they have to implement Technology, Equipment, Tools and other Physical AIDS have to use in their production for increase speed of production which will help to more production and gain more profit easily in less time, any country who use advanced technology and equipment, these country always have good GDP Rate because of their production speed, same here North Korea have to implement for increase capital productivity for their economic growth.