Tuesday 3 March 2009

What is the cause of economic growth

What's the cause of Economic growth?there are two factors.
1. The quantity of factor of production increase. Factor of production including the increase in
labour or increase in the average work time of each worker , the material goes up and raise the
capital.The productivity of factor of production goes up.
2. The productivity of factor of production it's increase including the skill of labour goes up,
because of effective management the organization goes up and productivity of equipment of the
capital get strong. Especially the important thing is the skills improve

1 comment:

chris sivewright said...

"the material goes up and raise the
capital." what does this mean?