Study Economics notes on Economic Growth and Development for O-Level. Useful for revision, homework, and exam preparation in Zimbabwe.
A free account is needed to download. Sign in or create one
This is the O-Level Economics notes. It is a free notes for revision.
Economics - ECONOMIC GROWTH AND DEVELOPMENT Economic growth is the quantitative increase in national income produced in an economy.OR Economic growth is the increase in the market value of the goods and services produced by an economy over time.It is conventionally measured as the percent rate of increase of real gross domestic product, or real GDP. Economic concerned with increase in size of national income / growth National product (GNP, Therefore economic growth concerned with increase in level of output produced in an economic without considering social and political aspects of the economic. DETERMINANT OF ECONOMIC GROWTH The level of economic growth may determined by various factor. There are:- 1. Availability of Natural resources (Natural endowment ) Natural resources may include all natural endowment such as soil, forests, minerals resources, climatic situation and so on. Therefore if country endowed with that resources and well used in production size of output will increase (economic growth) and if not available will course low level of economic growth. 2. Human factor / availability of quantity and quality labor force -country which has strange number of labor force and high quality(skilled labor), these labor may engage in production activities and make effective utilization of Natural resources which lead to high economic growth, While unavailability of skilled and unskilled labor course low rate of economic growth. 3. Technology progress/state of technology. -Improvement in state of technology may cause people to use modern tools in production process which cause large production and economic growth while low level of technology also may lead to lower economic growth. 4. Availability of capital and capital accumulation. -Country with high level of capital and being able to accumulate capital will be able to produce more goods and services while country with less capital will produce less and lead to low level of economic growth. 5. Political situation: - This includes political stability and instability, country with political and social stability create conducive environment for investment and production which lead to high rate of economic growth , while political and social instability discourage investment and production which cause low rate of economic growth. 6. Investment and economic policies of government formula, conducive economic and investment policies such as low tax increase in subsidies, less documentation and procedure in …