5.5 Economic Growth

• What does potential GDP growth indicate?

  Maximum sustainable output
• What is the typical measure of economic growth?

  Annual percentage change in real GDP
• Match the type of physical capital with its impact on economic growth:

  Buildings ↔️ Increases production capacity

  Infrastructure ↔️ Improves transportation

  Machinery ↔️ Enhances efficiency
• What does potential GDP growth indicate?

  Maximum sustainable output
• Match the type of physical capital with its impact on economic growth:

  Buildings ↔️ Increases production capacity

  Infrastructure ↔️ Improves transportation

  Machinery ↔️ Enhances efficiency
• A highly skilled workforce makes better use of physical capital and natural resources.


  True
• What are the benefits of integrating new technologies into economies?

  Higher productivity and efficiency
• How does capital contribute to economic growth?

  Expands production capacity
• Order the factors contributing to economic growth by their primary role:

  1️⃣ Labor provides the workforce

  2️⃣ Capital supplies buildings and equipment

  3️⃣ Total Factor Productivity enhances efficiency
• What are the main factors contributing to economic growth?

  Labor, capital, technology, natural resources, human capital
• What are the four types of physical capital and their examples?

  Buildings, machinery, infrastructure, technology
• Match the type of physical capital with its impact on economic growth:

  Buildings ↔️ Increases production capacity

  Machinery and Equipment ↔️ Enhances efficiency and output

  Infrastructure ↔️ Improves transportation and communication

  Technology ↔️ Integrates new processes for higher productivity
• Order the following types of infrastructure based on their primary economic impact:

  1️⃣ Roads

  2️⃣ Railways

  3️⃣ Broadband Networks
• Human capital enables more efficient use of other factors of production
• Integrating new technologies leads to sustained economic growth
• Natural resources provide raw materials for production and exports
• Total Factor Productivity (TFP) measures the efficiency of input use to produce output.


  True
• Economic growth is typically measured as the annual percentage change in real GDP.

  True
• Economic growth is typically measured as the annual percentage change in real GDP
• Technology is a key factor in economic growth.


  True
• What is the role of natural resources in economic growth?

  Fuel production and exports
• Economies with a highly skilled workforce are better positioned for sustained growth
• Higher human capital enhances productivity and innovation
• Education is a key investment for developing human capital.

  True
• Technological innovation enhances productivity and efficiency
• Natural resources are a primary source of raw materials for production and exports.

  True
• Human capital enhances worker skills, knowledge, and innovation
• What is the typical measure of economic growth?

  Annual percentage change in real GDP
• Human capital enhances productivity and innovation through improved skills and knowledge of workers.


  True
• What does physical capital include?

  Buildings, machinery, equipment
• Buildings increase production capacity
• What is the role of technology in economic growth?

  Higher productivity
• What is the primary focus of human capital development for long-term economic prosperity?

  Continuous learning
• What role do natural resources play in economic growth?

  Provide raw materials
• How does labor contribute to economic growth?

  Increases total output
• Total Factor Productivity reflects technological and managerial improvements
• Which technological advancements have significantly improved efficiency and reduced reliance on fossil fuels?

  Renewable energy
• What does real GDP growth reflect?

  Total increase in output
• Higher human capital boosts productivity and innovation
• Investment in physical capital increases productivity.

  True