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UNFAVORABLE BALANCE OF PAYMENTS: An imbalance in a nation's balance of payments in which payments made by the country exceed payments received by the country. This is also termed a balance of payments deficit. It's considered unfavorable because more currency is flowing out of the country than is flowing in. Such an unequal flow of currency will reduce the supply of money in the nation and subsequently cause an increase in the exchange rate relative to the currencies of other nations. This then has implications for inflation, unemployment, production, and other facets of the domestic economy. A balance of trade deficit is often the source of a balance of payments deficit, but other payments can turn a balance of trade deficit into a balance of payments surplus.
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                           ECONOMIC GROWTH, PRODUCTION POSSIBILITIES: Economic growth is the process of increasing the economy's ability to produce goods and services. It is achieved by increasing the quantity or quality of resources. This process can be illustrated as an outward shift of the production possibilities curve. Production possibilities, which analyzes the alternative combinations of two goods that an economy can produce with given resources and technology, indicates economic growth with an outward shift of the production possibilities curve. The general method of achieving economic growth is by increasing the quantities or qualities (Q and Q) of the resources. The Growth ProcessShifting The Curve |  | Economic growth is demonstrated by an outward shift of the production possibilities curve. The curve presented in the exhibit to the right shows the production possibilities tradeoff between crab puffs on the vertical axis and storage sheds on the horizontal axis.With existing resources and technology, the economy can produce any combination of crab puffs and storage sheds up to or on the production possibilities curve. However, it cannot produce any combination of production beyond the curve, such as point M. While point M cannot be reached today with existing resources and current technology, it can be reached tomorrow through economic growth. Growth expands the frontier, causing it to shift outward. To illustrate the process of economic growth, click the [Growth] button. Point M can be reached when economic growth expands the frontier. Once the process is completed, point M lies ON the new production possibilities curve. Another success story achieved through the miracle of economic growth. Resource QuantitiesOne of two ways to achieve economic growth is by increasing resource quantities. Three notable resource quantity options are: - Labor: The quantity of labor can be increased through:
- Natural population growth.
- Immigration from other nations.
- More participation and fewer nonworkers.
Capital: The key to getting more capital is investment, giving up satisfaction today to get capital tomorrow. Materials: The key to increasing the quantities of materials is through exploration. Exploration is best illustrated by digging or drilling into the Earth's crust in search of mineral or fossil fuel deposits. Resource QualitiesThe other way to achieve economic growth is to increase resource qualities. Two important resource quality options are:- Education: Education increases the quality of labor resources. Better educated workers are more productive workers. Education includes both formal, sitting-in-a-classroom learning and informal, on-the-job-training experience.
- Technology: Technology is the knowledge and information society as a whole possesses concerning the production of goods and services. Better technology enables more production. Technology concerns all aspects of production, but it is often seen as an improvement in the quality of capital.
 Recommended Citation:ECONOMIC GROWTH, PRODUCTION POSSIBILITIES, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: July 18, 2025]. Check Out These Related Terms... | | | | | | | | | Or For A Little Background... | | | | | | | | And For Further Study... | | | | | | | | | | | | | | | | | | | | |
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ORANGE REBELOON [What's This?]
Today, you are likely to spend a great deal of time wandering around the downtown area trying to buy either shoe laces for your snow boots or a rim for your spare tire. Be on the lookout for the happiest person in the room. Your Complete Scope
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Rosemary, long associated with remembrance, was worn as wreaths by students in ancient Greece during exams.
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"A winner is someone who recognizes his God-given talents, works his tail off to develop them into skills, and uses those skills to accomplish his goals. " -- Larry Bird, basketball player
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