Question

Explain the features of growth definition of economics.

Answer 1

1. Efficient Allocation of Resources: This definition emphasizes the need for choice due to unlimited wants and scarcity of resources. It stresses not only the allocation but also the proper utilization of resources so that more wants can be satisfied.
2. Growth of Resources: It highlights that resources should not just be used properly, but there should also be efforts to increase them in order to satisfy ever-increasing wants.
3. Solutions to Economic Problems: Economics is concerned not only with identifying economic problems but also with suggesting ways and means to solve them.
4. Dynamism: Economic growth is measured in terms of change in national product over time. The definition takes into account the dynamic problem of production and the pattern of employment of scarce resources to produce goods over time, considering choices within an evolving economy.