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It is difficult to estimate the capital output ratio for an economy. The productivity of capital depends upon many factors such as the degree of technological development associated with capital investment , the efficiency of handling new types of equipment , the quality of managerial and organizational skill, the existence and the extend of the utilization of economic overheads and the pattern and rate of investment. For instance, the higher the proportion of investment devoted to the production of direct commodities, the lower the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads. The higher shall be the capital output ratio, and higher the proportion of investment devoted to public utilities, economic and social overheads.
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What are the factors affecting economic growth in Australia?
It depends on the land and the resources also the population
Explain growth of the global economy?
There are only three factors that constitute and contribute to economic growth: Labor, Capital, Technology.
What are the factors affecting economic growth in the UK?
Economic growth is measured by an increase in the real Gross National Product of a country or its GDP. There are two types of economic growth, long run and short run economic growth. Short run economic growth is caused by an increase in the aggregate demand of an economy, otherwise referred to as AD. AD is made up of four factors, consumption, investment, government spending and the net worth of imports and exports. An increase in any of these factors can lead to an increase in real GDP. Long run economic growth is caused by an increase in the quality or quantity of the factors of production of the economy. These FOP's are land, labour, capital and enterprise. An increase in any of these factors will cause an increase in the potential output of an economy meaning it has the potential to produce more.
What are the factors affecting economic growth in LDC?
http://www.edexcel.com/migrationdocuments/GCE%20Curriculum%202000/127729_5_4a_Factors_affecting_economic_growth16_01_03.pdf here's the link...you can read about it there.
What economic growth factor involves human resources?
Capital Goods
What are the factors affecting fdi in India?
One factor affecting the FDI in India is their economic growth. Also, another factor affecting the FDI in India is their capital preservation.
What are the four factors of economic growth?
The four factors of economic growth are natural resources, human capital (labor), physical capital (machinery, buildings), and technology. These factors work together to drive productivity, innovation, and overall economic expansion in a country.
What the the four factors of economic growth?
Physical capital, human capital, natural capital & technological change.
What are the factors affecting economic growth in Australia?
It depends on the land and the resources also the population
Explain growth of the global economy?
There are only three factors that constitute and contribute to economic growth: Labor, Capital, Technology.
What are the factors affecting economic growth in the UK?
Economic growth is measured by an increase in the real Gross National Product of a country or its GDP. There are two types of economic growth, long run and short run economic growth. Short run economic growth is caused by an increase in the aggregate demand of an economy, otherwise referred to as AD. AD is made up of four factors, consumption, investment, government spending and the net worth of imports and exports. An increase in any of these factors can lead to an increase in real GDP. Long run economic growth is caused by an increase in the quality or quantity of the factors of production of the economy. These FOP's are land, labour, capital and enterprise. An increase in any of these factors will cause an increase in the potential output of an economy meaning it has the potential to produce more.
Factors affecting economic growth and development?
Some key factors affecting economic growth and development include infrastructure investment, education and innovation levels, political stability and good governance, access to capital and credit, technological advancements, trade policies and regulations, and investment in healthcare and social services. All of these elements can play a significant role in determining a country's economic progress and prosperity.
What are the factors affecting economic growth in LDC?
http://www.edexcel.com/migrationdocuments/GCE%20Curriculum%202000/127729_5_4a_Factors_affecting_economic_growth16_01_03.pdf here's the link...you can read about it there.
What are the factors affecting the growth of tourism?
e=mc2
What does a decline in working capital over the years indicate?
Introductory economic courses tell us that declining capital is a bad sign for economic growth. Capital equipment such as computers and manufacturing equipment, things that are usually used with labor in producing output, is a supply factor (other supply factors include human resources, natural resources, and technology). A nation's potential production (as shown on a production possibilities curve which illustrates a simplified version of the combinations of capital and consumer goods that can be produced) is determined by supply factors along with demand and efficiency factors. Outward shifts of this curve mean economic growth; the potential production has increased. Using capital as an example, if capital increases (increase in supply factor), potential production will increase, thus indicating the potential for economic growth. On the other hand, if capital decreases, potential production will decrease, thus indicating a decrease in economic growth.
What factors affecting population growth is density independent?
Predation
What effect might increased savings have on economic growth?
Increased savings affects economic growth primary by changing the future level of savings with respect to investment. Since savings is matched to investment and investment is used to replace and purchase capital, future investment will determine the respective level of capital development. Economic growth, being a function of the factors of production, including capital, will be changed by increased savings by having a higher level of future capital. Moreover, increasing savings can increase or decrease future economic growth, depending on the difference between current investment and required investment. When current investment falls below required investment, future economic growth increases due to a savings increase and vice-versa. Decreasing growth is possible because factors of production have diminishing returns to scale, which means that increasing levels of capital have lower returns to productivity than previous units.
