identify internal factors and external factors that influence national production fluctuations.

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Economic growth defined as increasing the capacity of an economy. It used to produce goods and service which compared from one period of time to another. Also, it measures the change of real national output in short period. Whereas, long term growth shown to increase the potential Gross Domestic Product (GDP). Thus, economic growth plays an important role in the entire nation. This is to see whether the country is well developed or vice versa. On the other hand, economic growth creates high tax revenues to cut down government’s expenses. Therefore, it will reduce government borrowing and debt to GDP ratios. Indirectly, high increase make better standard of living. Besides that, more selection of goods and services are there for consumers. Again, more investment will be available cause of good economy growth. Last but not least, a good economic in a country improving public services. For example, government spends more on education and development areas. This is to ensure that good infrastructures are there.
Thus, there are four factors that influence economic growth, namely natural resources, human capital, entrepreneurship and capital goods. Firstly, natural resources mean the gifts of nature. It is something that can be found in or on the earth. Examples of natural resources are agriculture, minerals and oil. Countries that full of natural resources produce cheaper goods and services as compare of importing natural resources from other countries. Next, human capital is also one of the factors that promote economic growth. Human capital means talents, skills, abilities and education that human workers possess. Nowadays, government used human capital of their citizens to support them. For examples, government provides free train...

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...wing will be less. Also, economic growth creates high tax revenues to reduce borrowing. Also, excellent economic in a country brings in more investment. Overall, whether the country is wealth, it is always depend on the economic growth on that particular country. On the other hands, national production can be defined as goods and services that produced in a period of time for a year. Two methods that measure national production are gross domestic product (GDP) and gross national product (GNP). Gross domestic product (GDP) means total market value of all goods and services produces in a nation. And, gross national product (GNP) is final goods and services of market value which using own resources of products whether inside or outside the country. In short, both gross domestic product and national product are important to measure economic performance of a country.
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