Which statement regarding sustainable economic growth is true?
a.) Sustainable sources of growth shift the AD curve to the left.
b.) Economic output is sustainable if it is caused by expansionary governmental policies.
c.) Overuse of current resources without planning for future needs is sustainable.
d.) New production techniques can cause the level of sustainable output to Increase.
The Correct Answer and Explanation is :
The correct answer is d.) New production techniques can cause the level of sustainable output to increase.
Explanation:
Sustainable economic growth refers to growth that can be maintained over the long term without depleting the resources or damaging the environment in a way that would hinder future growth. It’s not about merely increasing output in the short term, but about doing so in a way that ensures economic stability and preserves the capacity for future generations to meet their needs.
The idea behind this option (d) is that by developing and implementing new production techniques, economies can increase their output in a sustainable manner. These new techniques may involve the adoption of more efficient technologies, improvements in resource management, or innovations that lead to higher productivity without the need for additional resources or environmental harm. For example, advancements in renewable energy technologies or more efficient manufacturing processes can allow an economy to produce more while using fewer raw materials or emitting less pollution.
In contrast, the other options don’t reflect sustainable growth:
- Option a.) “Sustainable sources of growth shift the AD curve to the left” is incorrect because sustainable growth generally means improving the capacity of the economy, which would lead to increased output, not a contraction of demand (which is what a leftward shift of the AD curve would indicate).
- Option b.) “Economic output is sustainable if it is caused by expansionary governmental policies” is incorrect because expansionary policies, such as increased government spending or tax cuts, can lead to temporary increases in economic output but don’t guarantee long-term sustainability. Sustainability requires careful resource management, not just government intervention.
- Option c.) “Overuse of current resources without planning for future needs is sustainable” is false because overusing resources without a plan for their replenishment or the development of alternatives is actually a path to unsustainable growth.
Let me now generate an image to represent sustainable economic growth through new production techniques.
Here is the illustration representing sustainable economic growth through new production techniques. It shows how advanced technologies and clean energy sources can help balance industrial productivity with environmental responsibility. Let me know if you’d like any changes!
