0 votes
in Revision by

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

1 Answer

0 votes
by (47.6k points)

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.

Related questions

0 votes
1 answer
0 votes
0 answers
0 votes
1 answer
+1 vote
1 answer
Register, ask, and answer questions to earn more points and privileges. Some features are disabled for users with few points.
Welcome to Kenyayote Q&A, the largest community site in Kenya where you can ask any question and receive answers from Kenyayote staff and other members of the community.

Before you ask, search the website to make sure your question has not been answered.

If you are ready to ask, provide a title about your question and a detailed description of your problem.

Register to join Kenyayote Ask Community.