Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increased resource allocation
B
Decreased consumer spending
C
Regulatory restrictions
D
Higher unemployment rates
Understanding the Answer
Let's break down why this is correct
Answer
The primary factor that drives economic growth in an economy is the efficient use of resources. When resources like labor, capital, and technology are used effectively, they create more goods and services, leading to increased production and income. For example, if a factory invests in new machines that work faster and produce better products, it can make more items to sell, boosting its profits and allowing it to hire more workers. This not only helps the factory grow but also contributes to the overall economy by creating jobs and increasing consumer spending. Therefore, how well an economy allocates and utilizes its resources plays a crucial role in its growth and prosperity.
Detailed Explanation
When more resources are used wisely, businesses can grow. Other options are incorrect because Some might think that spending less helps save money; People may believe that rules help protect us.
Key Concepts
Economic growth
Topic
Economic Growth and Resource Allocation
Difficulty
easy level question
Cognitive Level
understand
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