4.1.2 Causes of Growth

• GDP measures the total value of goods and services produced in a country.


  True
• Ways increased capital and investment drive economic growth

  1️⃣ New technology and machinery

  2️⃣ Expanded infrastructure

  3️⃣ Increased business investment
• Investing in new technology and machinery boosts worker productivity
• How do technological advancements increase economic growth?

  Increased productivity
• Technological progress is a crucial long-term driver of sustainable economic growth.


  True
• Technological innovations lead to the development of new products and services
• What does increased capital and investment contribute to economic growth?

  Expanded productive capacity
• Improved labor productivity comes from enhancing worker skills and education.

  True
• A healthy workforce is more productive and less likely to miss work.


  True
• What does economic growth measure in terms of GDP?

  Percentage increase
• Increased capital and investment is a main cause of economic growth.


  True
• Match the cause of growth with its description:

  Increased capital and investment ↔️ Expands productive capacity

  Increased labor supply ↔️ Grows the workforce

  Improved labor productivity ↔️ Enhances worker skills

  Technological progress ↔️ Develops new products
• Technological advancements drive productivity, innovation, and efficiency
• What are two key areas of human capital development that contribute to economic growth?

  Education and healthcare
• Increased capital and investment is unrelated to human capital development.

  False
• Exporting natural resources can generate foreign exchange revenues
• Efficient extraction and processing of natural resources can boost overall productivity in the economy.


  True
• What three other factors, when combined with natural resource utilization, are most effective for sustainable economic growth?

  Capital investment, technological progress, and human capital development
• What do strong institutional frameworks and government policies create for economic growth?

  A stable environment
• What does trade liberalization reduce to increase access to global markets?

  Trade barriers
• When consumer demand increases, businesses hire more workers
• Economic growth is measured as the percentage increase in a country's GDP over a year.


  True
• What does increased capital and investment allow a country to do in terms of production?

  Expand its capacity
• Investing in more advanced capital goods boosts productivity
• Technological advancements increase productivity, innovation, and efficiency improvements.


  True
• What are the two main components of human capital development that drive economic growth?

  Education and healthcare
• What is the role of technological advancements in economic growth?

  Driving productivity and innovation
• What is human capital development?

  Enhancing workforce skills
• Match the cause of growth with its description:

  Human capital development ↔️ Enhancing skills, knowledge, and health of the workforce

  Increased capital and investment ↔️ Expanding productive capacity with new machinery and infrastructure

  Technological progress ↔️ Driving productivity and efficiency through new technologies
• Natural resource utilization only increases export revenues.

  False
• What are the key components of institutional frameworks that promote economic growth?

  Property rights and rule of law
• How does increased consumer demand drive economic growth?

  Higher production and investment
• What are the benefits of international trade and globalization for economic growth?

  Productivity gains and economies of scale
• What does economic growth measure in a country?

  GDP increase over a year
• Increased capital and investment expands a country's productive capacity
• Increased labor supply can lead to economic growth.


  True
• Ways increased capital and investment drive economic growth

  1️⃣ New technology and machinery

  2️⃣ Expanded infrastructure

  3️⃣ Increased business investment
• Technological innovations lead to the development of new products and services
• How do technological advancements increase productivity in the economy?

  More output per hour
• Technological advances reduce costs and increase profitability in production processes.


  True