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Economic Growth

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Economic Growth

  1. 1. Economic Growth What is economic growth?
  2. 2. Economic Growth = An increase in a country's production capacity to produce goods and services
  3. 3. What do we use to produce a car? 1. Raw material 2. Labour 3. Technology 4. Capital What will happens to our production capacity if we have more of these factors?
  4. 4. What is the value of all these goods? R80 000 R90 000 R100 0000
  5. 5. What is GDP ? • GDP = is the value of all the final goods and services produced within the borders of a country in a given period of time. • We use GDP to measure economic growth • If we produce more goods and services , what happens to the value of our country’s GDP?
  6. 6. There are several factors that affect economic growth 1. The discovery of new raw material 2. Increased labour productivity 3. Improvements in technology 4. Capital investments
  7. 7. Discovery of new Raw material
  8. 8. Increased labour productivity
  9. 9. Improvements in technology
  10. 10. Capital investments
  11. 11. . Any questions?
  12. 12. Activity! Explain how the following factors lead to economic growth in a country? 1. The discovery of new raw material 2. Increased labour productivity 3. Improvements in technology 4. Capital investments

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