The key to producing and organizing factors of production to increase economic growth is having institutions that create the proper incentives.

Question

Quizplus · Accepted Answer

Institutions such as property rights, free markets, and contract enforcement create incentives for individuals and firms to invest in the factors of production, leading to increased economic growth. Without these institutional frameworks, there may be little motivation for individuals to invest in new technologies, capital equipment, or human capital.

The Key to Producing and Organizing Factors of Production to Increase