Question

Economic growth comes from Select one:

A. capital accumulation and technological advance.
B. producing more goods than people want to consume.
C. people willing to increase their skills, in which case, economic growth is free.
D. capital accumulation and the avoidance of opportunity cost.

Answer 1

Economic growth comes from capital accumulation, which includes improvements in human and physical capital, and technological advances. This combined effort leads to productivity improvements, a foundation for expansion, and job creation in a market-driven economy.

Step-by-step explanation:

Economic growth primarily comes from capital accumulation and technological advancement. Capital accumulation can refer to both an increase in physical capital per worker—such as machinery or infrastructure—and human capital, which includes skills and education.

Meanwhile, technological advance encompasses a broad array of improvements from major scientific discoveries to incremental innovations and better management or institutions. A combination of these factors facilitates productivity improvements, which are the foundation of economic growth. Jobs are created in growing economies, where these components contribute towards moving the aggregate production line higher.

For high-income countries, maintaining a robust rate of economic growth involves continuous investment in education to cultivate a knowledgeable workforce adept at creating and applying new technologies. These investments, together with supportive fiscal and monetary policies, help to create a stable, market-oriented economic climate conducive to growth.