The major sources of economic growth are
A) gains from trade, entrepreneurial discovery, and investment.
B) high taxes, an expansion in the size of government, and restrictions on investments by foreigners.
C) rapid expansion in the supply of money, trade restrictions, and government licensing of business activities.
D) free and open elections and politicians who are willing to place the general welfare of the populace above their political ambitions.

Question

Quizplus · Accepted Answer

Gains from trade lead to increased specialization and efficiency, resulting in higher levels of production and consumption. Entrepreneurial discovery drives innovation and creates new products and markets. Investment provides the capital needed for businesses to expand and improve technology, leading to increased productivity and growth. Together, these factors contribute to economic growth. B, C, and D are incorrect because they all involve government intervention and restrictions that can hinder economic growth rather than promote it.

The Major Sources of Economic Growth Are