Question

Which of these can be an indicator of economic growth for a country?

• A. Balance of payment position
• B. Increase in government spending on defence
• C. increase in labour productivity
• D. demographic changes.

Answer 1

Answer: (C)

increase in labour productivity

Labour productivity refers to the ability of the workers to produce more goods and services in an economy. Labour productivity can be increased with regular training. Economic growth is a phenomenon where there is an increase in the inflation adjusted market prices of goods and services in an economy.