Economic Growth Factors

What are the 4 factors that lead to a country’s economic growth?

• investment in human capital, investment in capital goods, natural resources, entrepreneurship

• good international relations, a democratic president, strict laws, freedom of press

• a powerful military, strong dictatorial leadership, communist regime, little personal freedom

• a monarchy, the World Bank, a parliamentary democracy, personal freedom

What are natural resources?

• resources that are gone from nature

• resources that are manufactured for the environment

• resources that are considered worthless

• materials or substances that occur in nature and can be used for economic gain.

What do entrepreneurs do?

• represent business at the capital

• make all the laws in regards to business

• start their own business, invent something new, or change the way something was previously done so that it works better

• work in politics with regards to foreign business

A country investing in education

• Human Capital

• Capital Goods

A country investing in newer technology

• Human Capital

• Capital Goods

A country investing in skills

• Human Capital

• Capital Goods

A country investing in new machinery

• Human Capital

• Capital Goods

A country investing in the health of their citizens

• Human Capital

• Capital Goods

A country investing in updating outdated factories

• Human Capital

• Capital Goods

Ca.ital goods are the _________________people use to produce goods and services

• Raw materials

• Factories machines, & technology

• Skills, knowledge, and experience