Growth Economics Flashcards, test questions and answers
Discover flashcards, test exam answers, and assignments to help you learn more about Growth Economics and other subjects. Don’t miss the chance to use them for more effective college education. Use our database of questions and answers on Growth Economics and get quick solutions for your test.
What is Growth Economics?
Growth Economics is a branch of economics that focuses on the study of economic growth and how it can be affected by different factors such as demand, supply, technology, institutions, resource availability and policies. It studies the long-term effects of investments and changes in the economy on growth. It also looks at how economic growth affects society, such as poverty levels and inequality.Growth Economics seeks to understand why some countries are able to achieve sustained economic development while others remain stagnant or decline over time. It looks at various theories related to economic development such as neoclassical theory, endogenous growth theory, new institutional economicsã€catch up with technology and public choice theory. These theories seek to explain why some economies grow faster than others or have more unequal outcomes than others. Growth Economics also examines how different policies can affect economic growth both positively and negatively.One area of research in Growth Economics is looking at productivity growth within a country’s economy: What factors lead to higher productivity? How can policy makers encourage increased productivity? Another important topic for Growth Economics is determining the effect of population change on an economy’s performance: Does a growing population lead to more overall prosperity or does it strain resources? Finally, Growth Economics deals with international trade relationships: How do countries benefit from trading goods with one another? What effect does this have on global standards of living? All these questions allow economists to understand better how an economy works so they can develop policies that will promote sustainable long-term economic growth for everyone involved.