Question

What is economic growth ?

• A. An increase in the production of goods and services in an economy
• B. A decrease in the production of goods and services.
• C. A rise in unemployment rates.
• D. A decline in the standard of living.

Answer 1

Answer:

A. An increase in the production of goods and services in an economy

ECONOMIC GROWTH

• An increase in the production of goods and services in an economy is called economic growth.

• Increase in the output of goods and services imply an increase in the national income of a country.

• In short, economic growth means an increase in the total output of a country compared to that of the previous year.

• It is generally believed that progress in the production sector creates more employment opportunities in a country.

• The income earned by the workers through employment increases their purchasing power. This improves the standard of living of the workers