Question

Government policies can try to influence the economy's growth rate in many ways: by encouraging saving and investment, encouraging investment from abroad, fostering education, promoting good health, maintaining property rights and political stability, allowing free trade, and promoting the research and development of new technologies. What factors do you believe will lead to greater economic growth? What trade-offs are necessary to sustain economic growth?

Answer 1

Economic Growth refers to the increase in the level of productive capacity in the form of real Gross Domestic Product (GDP) at every level of period of time. As mentioned in the question, the given factors are responsbile for Economic Growth accordingly depending on the features rested with Policital and Geographical Conditioins.

But the Factors which are considered as the main determinants for faster and greater economic growth are classified in Economic  and Non-Economic Factors. The Economic factors such as Natural resources, Value of Goods and Services, Labour value and Techology are the indicators of the Economic Growth.

The Non-Economic factors such as Cultural aligning with Social Factors, Demography and Geography factors, Politcal Factors are also act as indicators of the Economic Growth.

Trade-off in Economics refers to the Optimum Spending on Efficient Productive activities. We can depict Example of Utilizing Solar power for generaring Electricity instead of using other source of Expensive Energy like Atomic Energy. This also referred as Alternative Cost.

Alternative Cost was also called as Opporunity Cost in the Trade=Off Cost. This Cost was used in Internal and External Economics in the Industrial Sector.