1. Economic Growth

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

3. 4 Factors that Cause Economic Growth

4. 1. Human capital: the work force

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

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

7. 4. Entrepreneurship: (Smart ideas of smart people)

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

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

10. 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.

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

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

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

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

15. GDP