As economics essays

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Theory and observation set out the conditions such that market prices of outputs and productive inputs select an allocation of factor inputs by comparative advantage, so that (relatively) low-cost inputs go to producing low-cost outputs. In the process, aggregate output may increase as a by-product or by design . [37] Such specialization of production creates opportunities for gains from trade whereby resource owners benefit from trade in the sale of one type of output for other, more highly valued goods. A measure of gains from trade is the increased income levels that trade may facilitate. [38]

Economic growth is a major field of study, due to the significant impact it has on the society in general, as well as the various units that make up the society. This essay has examined both the positive and negative effects of economic growth on society. Some of the positive impacts include an increase in wealth/reduction in poverty, improved standards of living, health, education and infrastructure and technology. It was also noted that in a number of cases, the causality ran both ways. For instance, while economic growth can have positive effects on health, education and infrastructure, these in turn also have positive effects on economic growth. The negative effects discussed on the other hand include creative destruction, natural social tension, health challenges, increase in income inequality, increased pollution and a depletion of natural resources. Examples from various countries have been used to illustrate these effects. In addition, various suggestions and recommendations were highlighted on how to counter some of the negative effects economic growth can have. While these may not totally eliminate these negative impacts, they can nevertheless go a long way in minimising the negative effects and enhancing the positive influence economic growth can have.

As economics essays

as economics essays

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