Final answer:
Differences between economic systems as a population increases can be measured using GDP, which reflects economic activity and growth. GDP per capita is another critical measure, adjusting for population growth and indicating the economic output per person. Factors like capital deepening, technology, and human capital are essential for sustainable economic growth.
Step-by-step explanation:
As a population increases, the differences between economic systems can be measured by several key indicators. One important measure is Gross Domestic Product (GDP), which assesses the value of all goods and services produced within a country and reflects economic activity and growth. Growth in GDP indicates that the economy is likely expanding, and as a result, can lead to an improvement in the standard of living for the population. This includes rising incomes, increased educational opportunities, and the capacity for the population to grow. On the other hand, GDP per capita is a critical measure that accounts for population growth by analyzing the average economic output per person. This metric helps determine whether individual prosperity is improving or declining, regardless of total GDP growth.
Other components that contribute to economic growth include capital deepening (increase in capital per worker), advancements in technology, and enhancements in human capital. These components foster a productive environment that propels GDP per capita and thus, are essential for the sustained economic growth of a nation in a market-oriented system supported by conducive public policies and institutions.
In summary, as a population increases, the difference between economic systems is measured by changes in GDP, standard of living, and factors that influence growth.