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Svetlanka [38]
2 years ago
14

explain the factors that influenced economic growth in the united States in the mid-nineteenth century

History
1 answer:
Katena32 [7]2 years ago
6 0

Natural resources

Technology

Law

capital or Infrastructure

Population or labour

Human capital.

EXPLANATION:

1. Natural Resources

The discovery of more natural resources such as oil, or mineral deposits may boost economic growth as this shifts or increases the country’s Production Possibility Curve (PPC). Other Natural resources are land, water, forests and natural gas.

2. Physical Capital or Infrastructure

Increased investment in physical capital, which are factories, machinery, and roads, will lower the cost of economic activity. Better factories and machinery are more productive than physical labor.

3. Population or Labor

A growing population means there is an increase in the availability of workers or employees, which means a higher workforce. One disadvantage of having a large population is that it could lead to high unemployment

4. Human Capital

An increase in investment in human capital can increase the quality of the labor force. This increase in quality would result in an improvement in skills, abilities, and training. A skilled labor force has a significant effect on growth since skilled workers are more productive.

5. Technology

Another influential factor is the development of technology. The technology could increase productivity with the same levels of labor, thus accelerating growth and development.

6. Law

An institutional framework that coordinate economic activity such as rules and laws. There is no specific set of institutions that promote growth.

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