JAMB Economics 1985 Question 41

Question 41

Economic Growth and Development

If an economy grows at an annual rate of 6%, of which 4% is deemed to be due to improvement in the productivity of labour and capital combined, the remaining 2% is generally attributed to

  1. A.technical progress
  2. B.size of the population
  3. C.amount of natural resources
  4. D.the environment
  5. E.the quality of human resources
Show the answer and explanation

Answer: A (technical progress)

Explanation

Growth not explained by labour and capital (the 'residual') is credited to technical progress.