20

COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES

Week 8, 2nd Trimester, AY 2021-22
HOMEWORK NO. 2
MARKS

COURSE CODE BSIB522 COURSE TITLE PHILOSOPHY OF BUSINESS AND WEALTH OF

NATIONS

SECTION FB TIME DAYS ROOM

STUDENT NAME ID NO. DATE

CAUSES OF ECONOMIC GROWTH

TOPIC
HOME WORK
1. Economic growth of a country is measured by its GDP. Critically analyse
DIRECTION &
the impact of each factors of economic growth on a nation’s GDP with
REQUIREMENT suitable examples. (4*2.5=10 marks)
/S

ASSIGNMENT The following six causes of economic growth are key components in an economy.
OUTPUT Improving or increasing their quantity can lead to growth in the economy.

1. Natural Resources
The discovery of more natural resources like oil, or mineral deposits may boost
economic growth as this shifts or increases the country’s Production Possibility
Curve. Other resources include land, water, forests and natural gas.

Realistically, it is difficult, if not impossible, to increase the number of natural

resources in a country. Countries must take care to balance the supply and
demand for scarce natural resources to avoid depleting them. Improved land
management may improve the quality of land and contribute to economic growth.

For example, Saudi Arabia’s economy has historically been dependent on its oil
deposits.

2. Physical Capital or Infrastructure

Increased investment in physical capital, such as factories, machinery, and roads,
will lower the cost of economic activity. Better factories and machinery are more
productive than physical labor. This higher productivity can increase output. For

1
 20
COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
Week 8, 2nd Trimester, AY 2021-22
HOMEWORK NO. 2
MARKS

COURSE CODE BSIB522 COURSE TITLE PHILOSOPHY OF BUSINESS AND WEALTH OF

NATIONS

SECTION FB TIME DAYS ROOM

STUDENT NAME ID NO. DATE

example, having a robust highway system can reduce inefficiencies in moving raw
materials or goods across the country, which can increase its GDP.

3. Population or Labor
A growing population means there is an increase in the availability of workers or
employees, which means a higher workforce. One downside of having a large
population is that it could lead to high unemployment.

4. Human Capital
An increase in investment in human capital can improve the quality of the labor
force. This increase in quality would result in an improvement in skills, abilities,
and training. A skilled labor force has a significant effect on growth since skilled
workers are more productive. For example, investing in STEM students or
subsidizing coding academies would increase the availability of workers for higher-
skilled jobs that pay more than investing in blue-collar jobs.

5. Technology
Another influential factor is the improvement of technology. The technology could
increase productivity with the same levels of labor, thus accelerating growth and
development. This increment means factories can be more productive at lower
costs. Technology is most likely to lead to sustained long-run growth.

6. Law
An institutional framework that regulates economic activity such as rules and laws.
There is no specific set of institutions that promote growth.

STUDENTS WILL ANSWER BASED THEIR OPPINION AND UNDERSTANDING

RUBRIC /
MARKING
SCHEME

2
 20
COLLEGE OF ADMINISTRATIVE AND FINANCIAL SCIENCES
Week 8, 2nd Trimester, AY 2021-22
HOMEWORK NO. 2
MARKS

COURSE CODE BSIB522 COURSE TITLE PHILOSOPHY OF BUSINESS AND WEALTH OF

NATIONS

SECTION FB TIME DAYS ROOM

STUDENT NAME ID NO. DATE

(See marking Scheme)

 Answer all questions in complete sentences.

 Demonstrate an outstanding knowledge of the
material(s).
 Uses specific examples from the text as proof.
 Provide detailed/clear explanation of your answer.
 Answer most of the questions in complete sentences.
 Demonstrate an above average knowledge of the
material(s).
 Use general examples or paraphrases from the text.
 Provide an explanation of your answer.
 Answer some of the questions in complete sentences.
 Demonstrate some basic idea of the material(s).
3
 Use vague examples or references from the text.
 Provide a vague explanation.
2-  Answer the questions.
1  Demonstrate only a clue.
 Use the slightest references to the text.
0  Incomplete sentence/s, makes NO sense.

LEARNING ASSESSMENT/MARKING FACULTY/MARKER’S FEEDBACK

ITEM CIL MARKS MARKS AWARDED
O

1 C7 10

TOTAL 10