Question

Economic growth measures

a) the increase in nominal income.

b) the increase in the volume of output on either a total or a per capita basis

c) the growth of efficiency

d) the growth of productivity.

Answer 1

b:the increase in the volume of output on either a total or a per capita basis

Economic growth rate is measurment of increase in the value of Goods and services produced in the economy over a period of time. Usually change in GDP is considers a good measure of economic growth. some GDP divided with population to get percapital ioutput.

WRONG OPTIONS:

a: the increase in nominal income.

the increase in nominal income.: Increase in nominal income may result from an increase in money supply. thus the measurement of nominal income does not indicate increase in output.

c. c) the growth of efficiency does not indicate economic growth

d.growth of productivity: increase in producticvity does not guarantee increase in output.