How to achieve Growth of Resources?

How to achieve Growth of Resources?

Every economy needs to know whether its productive capacity is increasing or not. In order to accelerate the pace of economic growth, underdeveloped countries need to grow their resources. However, it is a serious problem regarding the growth of resources. In order to grow the resources, an economy needs to invest in consumer goods and capital goods.

Similarly, there should be the investment in new technology, labor specialization, division of labor, employment of new production methods, increment in the labor force, and the discovery of new raw materials, etc in order to create the growth of resources.

Using a production possibility curve we can find whether there has been a growth of resources or not. If the production possibility curve shifts outward then it indicates that there has been the growth of resources. It suggests that the technological resources, capital, human, and other physical resources have increased which has led to an outward shift in PPC.

However, it should also be considered that there should be the sustainable growth of resources. The resources are scarce and might be nonrenewable. So the resources should be increased by maintaining the carrying capacity of the environment.



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