Essay about Economic Growth And Economic Development

941 Words Sep 13th, 2016 4 Pages
Economic growth is an important factor under consideration in the economy. It is normally regarded as economic progress and advancement. It is an increase in the ability of an economy to produce goods and services within a specified period of time.
It is termed as long-term expansion in the productive potential of the economy to satisfy the wants of individuals in the society in economics. A good performance or a positive economic growth plays an important role in the national income. A sustainable economic growth of a country is desired as it plays a role in the provision of labor and other economic factors.
Economists as both scientists and policymakers
Economists develops hypothesis and models that can be confirmed using a set of researched data. The models and the hypothesis results in the prediction of the future economy. Economists can use the data they have to know in what people do, or how they are affected with a certain change in prices or tax rates.
Economists are able to give an advice or what can be done in a certain situation of the economy. If the rate of taxation changes.
Economists contributive to identifying of winners and losers from public policy changes, think increasing the minimum wage, and private market changes.
Allocation of scarce resources
Allocation of scarce resources are done through the price system. This is done by the private market as an economic institution.
The law protect property rights. A person has a right to sell…

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