Which of the following factors contribute to economic growth?

Question

Quizplus · Accepted Answer

The discovery of new oil reserves can contribute to economic growth by providing a new source of natural resources that can be used to produce goods and services, create jobs, and generate revenue for the economy.

Option A is incorrect because a decline in the stock of physical capital would have a negative effect on economic growth since it would decrease the economy's ability to produce goods and services.

Option C is also incorrect because a decrease in the productivity of labor would reduce the amount of output that can be produced with a given amount of inputs, thereby reducing economic growth.

Option D is incorrect because a decrease in the quantity of labor due to emigration would reduce the economy's ability to produce goods and services, as there would be fewer workers available to produce them.

Which of the Following Factors Contribute to Economic Growth