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What are factors that may lead to an increase in the net national product?

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Factors that may lead to an increase in the net national product include;

  • Labour supply - Where the country with more skilled personnel would be expected to produce more since they employ concept of specialization.
  • Capital - Whereby the country that uses modern equipment such as tractors in ploughing would be able to produce more and quality goods and services.
  • Entrepreneurship - where factors that are organized in the correct portions, Output is likely to increase thereby increasing nation income.
  • Level of technology - Use of modern technology led to faster /efficient production hence the higher the output hence national income.
  • Foreign investment which increase production of goods and services that can save on importation.
  • Decrease in size of subsistence sector- which led to majority of population to engage in indirect production hence increases the country's national income.
  • Attitude of citizens towards work - where hard working citizens will work for long hours hence register high level of national income.
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