Question

When growth is driven by factors inside the economy, it is said to be:_______

a. endogenous.
b. exogenous.
c. random.
d. unsustainable.
e. based on luck.

Answer 1

Answer: a. endogenous.

Step-by-step explanation:

Endogenous growth refers to a phenomenon where growth in the economy is driven by internal factors instead of external ones.

The theory surrounding this type of growth supports investment in human capital in a nation because it believes that if the government and the private sector were to invest in human capital, there would be internal economic growth as the labor will become more productive.