Economic development of a country can be determined by ______.
Economic development of a country can be determined by ______.
The correct option is D all of the above
Following are some of the important
factors that affect the economic growth of a country:
(a) Human Resource:
Refers to one of the most important determinant of economic
growth of a country. The quality and quantity of available human resource can
directly affect the growth of an economy.
(b) Natural Resources:
Affect the
economic growth of a country to a large extent. Natural resources involve
resources that are produced by nature either on the land or beneath the land.
The resources on land include plants, water resources and landscape.
(c) Capital Formation:
Involves land, building, machinery, power, transportation, and
medium of communication. Producing and acquiring all these manmade products is
termed as capital formation. Capital formation increases the availability of
capital per worker, which further increases capital/labor ratio. Consequently,
the productivity of labor increases, which ultimately results in the increase
in output and growth of the economy.
(d) Technological Development:
Refers to one of the important factors that affect the growth of
an economy. Technology involves application of scientific methods and
production techniques. In other words, technology can be defined as nature and
type of technical instruments used by a certain amount of labor.
Technological development helps in increasing productivity with
the limited amount of resources. Countries that have worked in the field of
technological development grow rapidly as compared to countries that have less
focus on technological development. The selection of right technology also
plays an role for the growth of an economy. On the contrary, an inappropriate
technology- results in high cost of production.
(e) Social and Political Factors:
Play a crucial role in economic growth of a country. Social
factors involve customs, traditions, values and beliefs, which contribute to
the growth of an economy to a considerable extent.
Following are some of the important factors that affect the economic growth of a country:
(a) Human Resource:
Refers to one of the most important determinant of economic growth of a country. The quality and quantity of available human resource can directly affect the growth of an economy.
(b) Natural Resources:
Affect the economic growth of a country to a large extent. Natural resources involve resources that are produced by nature either on the land or beneath the land. The resources on land include plants, water resources and landscape.
(c) Capital Formation:
Involves land, building, machinery, power, transportation, and medium of communication. Producing and acquiring all these manmade products is termed as capital formation. Capital formation increases the availability of capital per worker, which further increases capital/labor ratio. Consequently, the productivity of labor increases, which ultimately results in the increase in output and growth of the economy.
(d) Technological Development:
Refers to one of the important factors that affect the growth of an economy. Technology involves application of scientific methods and production techniques. In other words, technology can be defined as nature and type of technical instruments used by a certain amount of labor.
Technological development helps in increasing productivity with the limited amount of resources. Countries that have worked in the field of technological development grow rapidly as compared to countries that have less focus on technological development. The selection of right technology also plays an role for the growth of an economy. On the contrary, an inappropriate technology- results in high cost of production.
(e) Social and Political Factors:
Play a crucial role in economic growth of a country. Social factors involve customs, traditions, values and beliefs, which contribute to the growth of an economy to a considerable extent.
