Question

Which describes a factor that limits economic growth? making investments developing technology engaging in trade having low internal demand

Answer 1

ANSWER: Having low internal demand

EXPLANATION: The economic growth of a country depends upon the goods produced and sold in the country and across borders. If the country is having low internal demands, it will be a loss for the government as there will be less production of goods and services. The government will either have to depend on exports which on one hand have limitations or will have to stop producing goods and services for citizens. This will in turn affect the country in many ways like unemployment, less money circulation etc.

Answer 2

Having low internal demand  limits economic growth.

What is Economic growth?

This os defined as the increase in the number of goods and services produced over a given period of time.

When the internal demands are low, the amount of goods and services produced will be reduced which therefore limits and doesn't support economic growth.

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