Economic Growth

A country wants its economy to grow so its citizens can have a high standard of living.

4 Factors that Cause Economic Growth

1. Human capital: the work force

2. Capital: factories, machinery, technology (The things the work force uses)

3. Natural resources: raw materials that come from the land They occur naturally. Examples include oil, dirt, rocks and animals.

4. Entrepreneurship: (Smart ideas of smart people)

Entrepreneurs The people who have new ideas to create new kinds of goods and services The most important people in a market economy

Entrepreneurs take risks. They borrow money to put their ideas to work.

Example of an entrepreneur taking a risk: 30+ years ago, Bill Gates had an idea that everyone could have a personal computer at home. Today he is the richest man in the world.

A country can improve its human capital (work force) by educating it.

Three SE Asian countries which invest heavily in their work force: Japan China India

Q: How can a country’s economy be measured?

A: With GDP (Gross Domestic Product) GDP: the value of all goods and services produced by a country in one year.

GDP https://www.youtube.com/watch?v=1Il5IQHcYP8