StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Requirement for Economic Growth - Essay Example

Cite this document
Summary
This essay "Requirement for Economic Growth" focuses on economic growth that is generally measured as either an increase in real output or an increase in real output per capita. In a nation, economic growth increases material abundance and raises a nation’s standard of living…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER92.3% of users find it useful
Requirement for Economic Growth
Read Text Preview

Extract of sample "Requirement for Economic Growth"

Economics
1.) Provide a perspective on a requirement for economic growth. 
Economic growth is generally measured as either an increase in real output or an increase in real output per capita. In a nation, economic growth increases material abundance and raises a nation’s standard of living. Six factors are considered determinants of economic growth: the quality and quantity of human resources; the quality and quantity of natural resources; the stock of capital facilities; technology; the level of aggregate demand; and economic efficiency. Any improvement in the aforementioned factors will bring about economic growth. However, this section will only take a look at the effects of technological advances in furthering economic growth.
Malthusian economics posits that the world economy is in danger as the arithmetic growth of food production cannot keep up with exponential population growth. What he fails to anticipate is the rapid technological improvement that significantly improved productivity. The present world situation becomes proof of how technology has improved efficiency among economies. It should be noted that technologically advanced countries like the United States and Japan enjoy a high level of production compared to their less advanced counterparts.
The technological change can be illustrated as a shift in the production possibility frontier. With technological advancement, processes in the value chain are conducted more efficiently. Mechanizing processes even necessitates the employment of fewer human resources which can significantly slash production costs. These resources can then be channeled to the production of other goods.
2.) Provide a perspective on how to effectively create jobs or reduce the number of unemployed. 
To prescribe a solution for the problem of unemployment, its causes must be first laid out and fully understood. There are four types of unemployment each with different causes. This section will examine how to efficiently create jobs and reduce demand-deficient unemployment. Demand-deficient unemployment occurs when there is not enough demand to employ all those who want to work. It is also known as cyclical unemployment as it directly varies with business cycles. It can be noted that when the economy is booming, there is a strong demand for employees from various firms. This will cause a low level of demand-deficient unemployment level. However, during times of recession, demand for labor will drop thereby causing an increase in demand-deficient unemployment.
Economic growth and unemployment are seen to be inversely related. As the economy grows, more jobs are created, and unemployment declines. The primary solution to cyclical unemployment is economic stimulation. Economic growth often brings about development in industries and opportunities in business organizations. These necessitate the employment of workers who will man the production of commodities. Economic growth is seen to increase the demand for labor to meet the expected boost in demand for products in services. Looking at the real-world situation, more economically developed countries have a lower level of unemployment than their less-developed counterparts. It was also mentioned that business cycles are more prevalent during economic recessions requiring lay-offs. During economic booms, however, the demand for human resources is high due to rapid job creation. It is therefore important to maintain and sustain economic growth to efficiently create jobs and job employment.      
3.) Provide an economic prediction. 
Economic forecasts are often made by economists to take a glimpse of how the economy is likely to perform. Forecasts are often based on historical data and likely market conditions. The United States and other countries around the globe release their annual and quarterly economic outlook which is a prediction of the future economic performance. 
The Organization for Economic Development forecasts that the US economy will continue its impressive development. It should be noted that in the past years, the nation can surpass the increase in oil prices and damaging hurricanes. Amidst all this, the US was able to post a decline in unemployment and stable inflation. However, growth is expected to improve at a slower pace which shows the lagged effects of the aforementioned economic problems. Employment is expected to increase by 1% in 2006, slashing the unemployment rate from 5.1% to 4.7%. U.S. real GDP is forecast to grow by 3.5 percent in 2006 and only 2.2 percent in 2007 attributed to the downturn in housing markets. Strong growth in investment spending and exports will enable the economy to avoid a recession next year. Slower U.S. economic growth will help lower world oil prices over the near term.
4.) Provide a perspective on the accuracy of economic data and forecasting. 
Economic forecasting is an essential tool used to predict the performance of the economy by looking at historical data. However, economic forecasting is only accurate if the model is fed with accurate data. 
5.) Provide a perspective on the government’s role in creating a more competitive environment. Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economics Essay Example | Topics and Well Written Essays - 1250 words - 7”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1538128-economics
(Economics Essay Example | Topics and Well Written Essays - 1250 Words - 7)
https://studentshare.org/miscellaneous/1538128-economics.
“Economics Essay Example | Topics and Well Written Essays - 1250 Words - 7”, n.d. https://studentshare.org/miscellaneous/1538128-economics.
  • Cited: 0 times

CHECK THESE SAMPLES OF Requirement for Economic Growth

Nationalism in Africa and Asia as a Mass Movement

In the paper 'Nationalism in Africa and Asia as a Mass Movement,' the author discusses the social composition of the ideological movement of nationalism.... The paper is an impressive example of the macro narrative approach to the history of the world that has been.... ... ... ... The writer provides a well argued, nuanced yet so clear, and highly informative overview of more than half a millennium of interaction cross-continentally and exchange....
7 Pages (1750 words) Essay

The Buy American Requirements

economic growth The buy American requirements create a business environment where external competitors are not allowed.... Maintaining a proper industrial base facilitates the growth and development of small companies.... In the long run, the economy would experience a quick growth.... This allows for a healthy competition within the existing economic market (Arrowsmith & Anderson, 2011).... The trade in such a market helps in quick economic development due to lack of external competitors from other countries....
5 Pages (1250 words) Admission/Application Essay

The Philippines: Failure in Emulating East Asian Growth

Essentially the East Asian model suggests the establishment of a strong state first and foremost as the Requirement for Economic Growth.... Because of the diversity in the political and cultural conditions of each country, following a particular economic growth model does not always produce the desired results.... It is clear from the discussion "The Philippines: Failure in Emulating East Asian growth" that each country has its distinct characteristics in politics and culture; two factors that fashion the nature of the economy....
11 Pages (2750 words) Essay

African Regionalism

There have been needs to find alternative methods for exploiting resources for economic growth.... The economic and political failures of past governments have promoted new African leaders to find ways to enhance the growth of their nations.... An economic union consists of common fiscal and economic policies.... It is also characterized by economic integration in which monetary policies are unified.... It also leads to better exploitation of resources for the economic interests of the state....
12 Pages (3000 words) Essay

Economic Growth and Its Analysis

This essay "economic growth and Its Analysis" discusses an increase in the annual output of an economy over a period of the year.... It also analyzes how to achieve economic growth under full-employment.... Supporters of economic growth counter this argument by saying that economic growth leads people to care more about the environment.... economic growth is the only way, by which people can be trained to protect and improve environmental conditions....
5 Pages (1250 words) Essay

Economic Growth in China

The purpose of this paper is to discuss the factors that contributed in demolishing the economic growth in China and to identify different macroeconomic policies implemented in last two years for pushing the economy of the country towards forward.... The paper "economic growth in China" is a great example of a report on macro and microeconomics.... The purpose of this paper is to discuss the factors that contributed to demolishing the economic growth in China and to identify different macroeconomic policies implemented in the last two years for pushing the economy of the country forward....
8 Pages (2000 words)

Marxism and Functionalism Theories for Healthcare Practitioners

he Marxist theory explores the role of social development as a Requirement for Economic Growth.... The knowledge of theories is important in understanding the link between economic development, social dynamics, and human health.... It results in economic activities that lead to the production of basic commodities needed for survival from the complex production systems found in modern capitalist economies (Elliott, 2012, p.... However, production requires organization and appropriate tools irrespective of the size, or the type of economic activity....
7 Pages (1750 words) Literature review

Business Opportunities for Doing Business in China

The market, an emerging market, has in the last two decades encountered increased growth and development.... Moreover, the increased Chinese economic investment in technological development and its vast population that presented both labour and consumption contributed towards its increased strategies in the market.... nfair competition in the market led to the Chinese economic crises.... As such, the economy in its economic crisis faced increased external borrowing that impacted its financial market....
18 Pages (4500 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us