What are the ingredients for a nation to experience rates of economic growth. Higher average standard of living and greater ability to compete in global economy

1. To improve economic growth, the following factors should be considered;

Lowering interest rates Increasing real wages Developing new technology

2. To improve standards of living, the following factors should be considered;

Improving education Equal resource allocation

3. To improve global economic competition, the following factors should be considered;

Improve education standards Improve technology

Explanation:

Economy can be defined as the state of a country in terms of the production and consumption of goods and services. A nation that wants to improve its economic ability should consider the following factors; economic growth, standard of living and ability to compete in global economy. Each of these factors are further outlined below;

1. Economic growth

Economic growth can be defined as the measure of how much the productions of goods and services per unit population number in that economy. Increased economic growth means that the average productivity of the people in the economy has also increased. Increased productivity usually means that more people are employed and thus have access to income. The following ingredients can be used to improve economic growth, namely;

Lowering interest rates: this usually reduces the cost of borrowing which in turn encourages spending and investment Increasing real wages: when the nominal wages are kept above the inflation then more people have more disposable income to spend and invest. Development of new technology: by investing more in technology, the economy's productivity can be increased at a lesser cost in the long-run.

2. Standard of living

The standard of living can be defined as the amount of wealth and necessities that are available to certain group in a particular geographic area. The geographic are can be; a country, region or even global. To improve the standards of living, the following things should be considered;

Improving education: most people countries with the highest poverty levels also have very high illiteracy levels. By improving education in terms of accessibility and value to a majority of the population, they can find new and innovative ways to solve their problems. Equal resource allocation: for a country to develop equally, resources have to be distributed evenly so that everyone experiences improved living standards. When most people have access to resources, they can be creative in utilizing these resources to increase production.

3. Global economic competition

Global economic competition is the exchange of goods and services between nations in the form of export and import. There are various factors to be considered if an economy wants to compete in the global arena, namely;

Education: most countries that thrive in the global economy are countries with very high literacy levels. Education improves creativity and innovation in such a way that most of the population don't rely heavily on the government for production. Educated individuals can find ways to be productive than uneducated individuals. Technology: advancement in technology improves production and services. Countries with high levels of technological know-how have been know to produce more goods with more efficiency and relatively low costs thus they are able to compete in the global economy.