The major sources of economic growth are
A)gains from trade,entrepreneurial discovery,and investment in physical and human capital.
B)price controls,heavy regulations,and high inflation.
C)tariffs to protect domestic industries from foreign competition and budget deficits.
D)a good climate,high levels of foreign aid,and abundant natural resources.

Question

Quizplus · Accepted Answer

Gains from trade, entrepreneurial discovery, and investment in physical and human capital are the three most important sources of economic growth. Gains from trade allow for specialization and exchange, leading to increased efficiency and productivity. Entrepreneurial discovery involves the creation and adoption of new ideas, technologies, and business models. Investment in physical and human capital allows for the accumulation of productive assets and skills, increasing the efficiency and productivity of workers and firms. Price controls, heavy regulations, high inflation, tariffs, and budget deficits are all likely to hinder economic growth. A good climate, high levels of foreign aid, and abundant natural resources may be beneficial, but they are not sufficient in themselves to ensure sustained economic growth.

The Major Sources of Economic Growth Are