Chapter 39, Problem 3MCQ

To determine

To know

Factor true for sustainable economic growth in the long run.

Explanation of Solution

The phenomenon of sustainable economic growth, in the long run, can continue even when the supply or availability of natural resources is limited. The concept of sustainable growth is the efficient utilization of natural resources so that future generations can also use them.

Thus, option “a” is correct.

The other options are incorrect because:

b. Thomas Malthus did not predict sustainable economic growth. He predicted the growth of the population and demographic situations in an economy.

c. Modern economies handle resources very efficiently with minimum wastage by using the available technologies.

d. Finding alternatives to natural resources doesn’t necessarily lead to sustainable economic growth. Sometimes the alternative product causes more harm to nature and natural resources.

e. A fall in total factor productivity reflects lower and unstable economic growth.

Economics Concept Introduction

An increase in the aggregate production of goods and services in an economy over time is considered economic growth. Economic growth is a quantitative measurement as it represents growth in numerical form in terms of GDP or National income.

Economic growth is said to be sustainable if it would remain stable for a long period of time without greater fluctuations.