5.4 Economic Growth

• Technological advances increase productivity
• A well-educated workforce contributes to long-term economic growth
• What is a key driver of economic growth?

  Technological progress
• What critical factor enhances the efficiency and capacity of the economy?

  Technological progress
• Match the component of human capital with its impact on economic growth:

  Education ↔️ Increases worker skills and knowledge

  Healthcare ↔️ Ensures a healthy and productive workforce

  Training ↔️ Improves on-the-job capabilities
• Technological advances are a key factor driving economic growth.


  True
• Increased investment in physical capital leads to higher GDP.


  True
• What is the primary effect of technological progress on businesses?

  Increases productivity
• What does human capital development improve in the workforce?

  Skills, knowledge, and health
• Order the components of human capital development and their impact on economic growth.

  1️⃣ Education - Increases skills and knowledge

  2️⃣ Training - Improves on-the-job capabilities

  3️⃣ Healthcare - Ensures a healthy workforce
• Economic growth is a crucial driver of living standards but should be evaluated using a broader range of measures
• Sustainable economic growth aims for long-term prosperity while preserving resources and promoting social equity.


  True
• Real GDP accounts for income earned abroad by residents.

  False
• Increased investment in physical capital leads to higher GDP.


  True
• Technological progress enhances the efficiency and capacity of the economy
• Renewable energy reduces reliance on fossil fuels and lowers energy costs.


  True
• Human capital resides within individuals and continuously evolves.


  True
• Real GDP reflects domestic productivity
• Capital drives economic growth by boosting productivity
• Order the factors driving economic growth from most transformative to least transformative:

  1️⃣ Technological Progress

  2️⃣ Human Capital Development

  3️⃣ Capital Accumulation
• Investing in human capital improves labor quality, innovation, and long-term economic performance
• Technological progress is the sole driver of long-term economic expansion.

  False
• Effective coordination between government policy areas can lead to sustainable economic expansion
• GDP and GNI fully capture improvements in living standards.

  False
• What are the three pillars of sustainable economic growth?

  Economic progress, environmental protection, social well-being
• Economic growth is often measured by the percentage change in real GDP
• Match the type of capital with its definition:

  Physical Capital ↔️ Man-made goods used in production

  Human Capital ↔️ Skills and knowledge of workers
• Order the following transformative technologies based on their impact on economic growth:

  1️⃣ Computers and Automation

  2️⃣ Internet and Digital Communications

  3️⃣ Renewable Energy

  4️⃣ Biotechnology
• Computers and automation increase efficiency and output in manufacturing, services, and information processing
• Human capital development enhances the skills, knowledge, and health of the workforce
• How is economic growth often measured?

  Real GDP or GNI
• What are three key factors driving economic growth?

  Technological advances, capital accumulation, human capital development
• How is human capital developed?

  Education, training, experience
• The Internet is an example of technological progress that revolutionized communication and commerce.


  True
• Technological progress enables businesses to produce more with fewer resources
• Fiscal policies can lead to higher debt and crowd out private investment.

  True
• What is the primary link between economic growth and living standards?

  Increased incomes and job opportunities
• Tax incentives for businesses adopting sustainable practices are an example of sustainable economic growth policy