4.1.2 Causes of Growth

• Economic growth refers to the increase in the productive capacity
• Match the main causes of economic growth with their descriptions:

  Capital Investment ↔️ Increasing the quantity and quality of capital goods

  Technological Progress ↔️ Developing new technologies and innovations

  Increase in Labor Supply ↔️ Growing the working population
• Economic growth is measured by the rise in real GDP
• Why is economic growth important for a nation?

  Improves well-being and prosperity
• Real GDP adjusts for inflation to provide a more accurate measure of economic progress.


  True
• What is human capital and why is it important for economic growth?

  Skills and abilities of workforce
• Investing in human capital can lead to a more skilled, adaptable, and innovative workforce.


  True
• Match the types of physical capital with their examples:

  Machinery & Equipment ↔️ Factories, computers

  Infrastructure ↔️ Roads, power grids

  Technology ↔️ R&D labs, software
• Physical capital refers to the machinery, equipment, and infrastructure used in the production of goods and services.
• Investment in physical capital boosts productivity and technological progress.


  True
• Match the GDP type with its description:

  Nominal GDP ↔️ Measures total production at current prices

  Real GDP ↔️ Measures total production adjusted for inflation
• One main cause of economic growth is capital investment, which increases the quality and quantity of capital goods.
• Order the main causes of economic growth based on their primary focus:

  1️⃣ Capital Investment

  2️⃣ Technological Progress

  3️⃣ Increase in Labor Supply

  4️⃣ Improved Education and Skills

  5️⃣ Efficient Resource Allocation
• Increased job creation is a direct benefit of economic growth.


  True
• Match the factor enhancing human capital with its economic impact:

  Education ↔️ Improves productivity and innovation

  Vocational Training ↔️ Reduces skill gaps and fosters employment

  Healthcare ↔️ Reduces absenteeism and increases productivity
• Technological progress complements human and physical capital, leading to higher real GDP and improved living standards.


  True
• Over-reliance on natural resources can lead to the "resource curse," which constrains long-term economic growth.
• Arable land and forests are examples of land
• What role do fossil fuels play in productivity?

  Provide industrial power
• Over-reliance on natural resources can lead to environmental degradation and price volatility.

  True
• Match the type of natural resource with its impact on productivity:

  Land ↔️ Enables agriculture

  Minerals ↔️ Supports manufacturing

  Water ↔️ Crucial for consumption

  Energy Sources ↔️ Powers transportation
• Government policies shape the conditions for economic growth
• Economic growth is typically measured by the rise in real GDP.


  True
• Order the main causes of economic growth based on their impact on productivity:

  1️⃣ Technological Progress

  2️⃣ Capital Investment

  3️⃣ Increase in Labor Supply

  4️⃣ Improved Education and Skills

  5️⃣ Efficient Resource Allocation
• The factors affecting economic growth can work together to drive sustained progress.


  True
• Match the benefits of economic growth with their descriptions:

  Improved Living Standards ↔️ Higher incomes and better quality of life

  Increased Job Creation ↔️ New employment opportunities arise

  Boost in Government Revenue ↔️ More tax revenue for public services
• Real GDP measures total production adjusted for inflation
• Match the impacts of human capital on economic growth with their descriptions:

  Increased Productivity ↔️ Skilled workers boost efficiency

  Technological Adoption ↔️ Better adaptation to new technologies

  Innovation Capacity ↔️ Fosters new ideas and research

  Improved Decision-Making ↔️ Educated workers make better choices
• Physical capital refers to the machinery, equipment, and infrastructure
• Investment in physical capital can boost productivity and promote technological progress.


  True
• Economic growth is the increase in the productive capacity of an economy over time, typically measured by the rise in real GDP.
• Understanding economic growth is crucial for indicating improvements in living standards and job creation.


  True
• Technological progress involves developing new technologies and innovations that improve production efficiency.


  True
• Economic growth improves living standards by leading to higher incomes, better access to goods, and overall higher quality of life.
• Economic growth generates higher tax revenue, enabling governments to fund essential public services like education and healthcare.
• Technological progress relies on innovation, which is the creation of new products, processes, and ideas.
• Match the natural resource type with its impact on productivity:

  Land ↔️ Enables agricultural and extractive industries

  Minerals ↔️ Supports manufacturing and construction

  Energy Sources ↔️ Provides power for industrial and transportation needs
• What are natural resources used for in the economy?

  Production and productivity
• Metals and precious stones support manufacturing and construction.


  True
• Surface water and groundwater are examples of water