📚 Learning Guide
Economic Growth and Resource Allocation
easy

What is the primary factor that drives economic growth in an economy?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose 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

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.