Economic Growth
Economic growth entails an increase in the Gross Domestic Product (GDP), the Gross National Product (GNP), and the National Income (NI). Economic growth is the process of expanding the size of national economies and GDP per capita in an ascending direction, with beneficial consequences for the economic-social sector (Haller 66).
Employment and Unemployment
Employment is a contract for paid work. The employer expects an employee to perform specific activities or provide services on the job. Wang et al. (4227) contend that the amount of people engaged in active employment is critical to the country's social and economic well-being. On the other hand, unemployment refers to the state of people not involved in any paid job despite their availability and willingness to work (Bowen, William, and Aldrich 279).
Unemployed people are those currently available and seeking work but lack the job opportunity.
Optimization
Optimization is an important economic principle, which refers to the information or resources available at the time of a choice. Economic agents try to optimize implying that they choose the best feasible options based on the information or resources available at the time (Bowen, William, and Aldrich 286).
Section 2
Economic growth is an important economic concept. It can be positive, zero, or negative. According to Haller (66), when a country records higher annual average rhythms of macro-indicators than the mean population growth, it experiences positive economic growth. Zero economic growth implies that macroeconomic indicators, particularly GDP, are equal to the population growth. When the population growth exceeds the macroeconomic indicators, the country records negative economic growth.
The state obtains economic growth through the efficient use of the available resources as well as increasing its capacity for production (Wang et al. 4230). Employment, which can be skilled, semi-skilled, and non-skilled, plays a principal role in creating a stable economic growth. On the other hand, high unemployment rate slows down the economic growth. Unemployed population puts pressure on the available scarce resources creating a constraint on economic growth. Optimization means that economic agents weigh the potential risks of choices.
Works Cited
Bowen, William G., and T. Aldrich Finegan. The economics of labor force participation. Princeton University Press, 2015, pp. 277-378.
Haller, Alina-Petronela. "Concepts of economic growth and development challenges of crisis and knowledge." Economy Transdisciplinarity Cognition 15.1 (2012): 66.
Wang, Jixin, Zhenyu Wang, Chao Yang, Naixiang Wang, and Xiangjun Yu. "Optimization of the Number of Components in the Mixed Model Using Multi-Criteria Decision-Making." Applied Mathematical Modelling, vol. 36, 01 Sept. 2012, pp. 4227-4240.
