In this fast paced economy, raising productivity is essential to the economic growth of country.
Every country has it's limitations on resources and the only way to raise productivity on the fixed amount of resources is through maximising the usage of resources efficiently. Economic growth is the process of increasing the economy's ability to produce goods and services. It is achieved by increasing the quantity or quality of resources. This process can be illustrated as an outward shift of the production possibilities curve. (AmosWEB*LLC, 2013)
Production Possibility curve (PPC) shows the maximum combinations of goods and services that can be produced by an economy in a given time period with its limited resources. Production Possibility Curve, (Anon. n.d.)
Dynamic Economic Graphs, [image online] Avaliable at: http://www.dineshbakshi.com/igcse-gcse-economics/basic-economic-problem/revision-notes/1261-production-possibility-curve [Accessed 22 May 2013]
As mentioned, increasing the quantity or quality of resources helps to achieve economic growth.
AmosWEB*LLC (2013) states that it can be done via these ways:
Labor – The quantity of labor can be increase through natural population growth, immigraton from other nations, more participation and fewer non workers.
Capital – The key to getting more capital is investment, giving up satisfaction today to get capital tomorrow.
Materials – The key to increasing the quantities of materials is through exploration. Exploration is best illustrated by digging or drilling into the Earth's crust in search of mineral or fossil fuel deposits. Resource Qualities:
Education - Education increases the quality of labor resources. Better educated workers are more productive workers. Education includes both formal, sitting-in-a-classroom learning and informal, on-the-job-training experience. Technology - Technology is the knowledge and information society as a whole possesses concerning...
References: AmosWEB*LLC , 2013. ECONOMIC GROWTH, PRODUCTION POSSIBILITIES. [ONLINE] Available at:http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=economic+growth,+production+possibilities. [Accessed 21 May 2013].
dineshbakshi.com, n.d., Production Possibility Curve. [ONLINE] Available at:http://www.dineshbakshi.com/igcse-gcse-economics/basic-economic-problem/revision-notes/1261-production-possibility-curve. [Accessed 22 May 2013].
GDP: The market value of final goods and services, newly produced WITHIN a nation
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