How does the economy use its factors of production (land, labor, capital, and entrepreneurship) to facilitate economic growth?

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Lucia Jarvis

4 July, 05:17

How does the economy use its factors of production (land, labor, capital, and entrepreneurship) to facilitate economic growth?

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Siena Pierce · Answer 1

Economic growth can only be seen when there is an increase in quality and quantity of the factors of production so clearly it is a function of these factors. The purpose of economic organization - including all labor - is to create things that people value. Economic growth occurs when more and cheaper goods can be created.