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Sources of Economic growth:
Human resources: Investment in human capital is considered as an important factor for economic growth. This is done by increasing the quality of a nation’s labour force through education and training in advance technology. It has also been proved that literacy not only improves productivity but also makes an individual more adaptable to new challenges.
Natural resources: Availability of natural resources (land and mineral) to a nation is also a vital source of growth. It is not only the availability of these resources but the extent to which they are exploited. It should be noted that for the exploitation of these resources care should be taken not to sacrifice the environment. This means that growth through exploitation of these resources should be sustainable and maintain environmental quality.
Government Production: Some production in the economy is undertaken directly by governments (or several kinds of government agencies) in order to meet public requirements (as disti
Suppose that nominal interest income is taxed at a rate of 30%. Calculate the before-tax real interest rate and the after-tax real interest rate if the nominal interest rate is 6%
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Assignments
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