essay on economics in almost 150 words
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Answer:
Economic Growth Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of…show more content…
Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A more reliable measure of economic growth is real GDP per capita; this measurement takes into account both the total production of the nation and the total population. Real GDP per capita measures the real income per head of the population. This can be measured by the following formula; Per capita nominal GDP = Nominal GDP / Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an essential foundation to economic growth. Combined with the other resources of capital, labor and enterprises, natural resources can be developed and organized to increase the productive capacity if the nation. Consequently the quality and size of the labor force is a major determinant of economic growth. Education and vocational training are essential the growth potential of a nation.
Explanation:
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Many people think that Economics is all about money . Well to some extent this is true. Economics has a lot to do with money: with how much money people are paid ;how much they spend :what is cost to buy various items;how much money firms earn;how much money there is in total in the economy. But despite the large number of area in which our lives are concerned with money, economics is more than just the study of money.
It is concerned with :
The production of goods and services :how much the money produces ;what particular combination of goods and services ;how much each firm produces ;what techniques of production they uses;how many people they employ....