Make a list of all factors responsible for increasing economic activities
Answers
Economic growth can be defined as an increase in the capacity of an economy to produce goods and services within a specific period of time.
In economics, economic growth refers to a long-term expansion in the productive potential of the economy to satisfy the wants of individuals in the society. Sustained economic growth of a country’ has a positive impact on the national income and level of employment, which further results in higher living standards.
ADVERTISEMENTS:
Apart from this, it plays a vital role in stimulating government finances by enhancing tax revenues. This enables the government to earn extra income for the further development of an economy. The economic growth of a country can be measured by comparing the level of Gross National Product (GNP) of a year with the GNP of the previous year. The economic growth of a country is possible if strengths and weaknesses of the economy are properly analyzed.
Economic analysis provides an insight into the essentials of an economy. It is a systematic process for determining the optimum use of scarce resources and selecting the best alternative to achieve the economic goal. Moreover, economic analysis helps in assessing the causes of different economic problems, such as inflation, depression, and economic instability. It is performed by taking into consideration various economic variables, such as demand, supply, prices, production cost, wages, labor, and capital.
Financial Factors in Economic Development:
In a nation's financial advancement the job of monetary variables is conclusive. The supply of capital and the rate of capital gathering by and large settle the inquiry whether at a juven purpose of time a nation will develop or not. The overflow of foodgrains yield accessible to help urban populace, outside exchange conditions and the idea of monetary framework are some such calculates whose job financial improvement must be broke down
Capital Formation:
The key job of capital in raising the dimension of creation has customarily been recognized in financial matters. It is currently all around conceded that a nation which needs to quicken the pace of development, has m decision yet to spare a high proportion of its salary, with the target of raising the dimension of speculation. Extraordinary dependence on remote guide is exceptionally dangerous, and in this manner must be maintained a strategic distance from. Market analysts properly affirm that absence of capital is the chief snag to development and no formative arrangement will succeed except if satisfactory supply of capital is imminent.
Regular Resources:
The central factor influencing the advancement of an economy is the normal assets. Among the regular assets, the land zone and the nature of the dirt, timberland riches, great stream framework, minerals and oil-assets, great and supporting atmosphere, and so on., are incorporated. For monetary development, the presence of characteristic assets in wealth is fundamental. A nation insufficient in characteristic assets may not be in a situation to grow quickly. Truth be told, characteristic assets are a fundamental condition for financial development yet not an adequate one. Japan and India are the two conflicting precedents.
Attractive Surplus of Agriculture:
Increment in horticultural creation joined by an ascent in efficiency is critical from the perspective of the advancement of a nation. Be that as it may, what is progressively critical is that the attractive excess of farming increments. The term 'attractive surplus' alludes to the abundance of yield in the agricultural part well beyond what is required to enable the country populace to subsist.