Factors of Economic growth

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

• investment in human capital, investment in physical capital, land (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 does human capital mean?

• the place where the most people live within a country

• the place where the most work is performed within a country

• the people who perform labor (work)

• the building where most people work in a country or state

What are capital goods?

• goods that are produced in the capital

• the factories, machinery, and technology used to produce goods and services

• goods that are produced without natural resources

• goods that are produced by the government

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