Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which factor does NOT typically influence economic growth?

1. The volume of investment

2. Technological advancements

3. Weather patterns

4. The rise in international trade

The correct answer is: Weather patterns

Economic growth is primarily driven by various factors that enhance a country's productive capacity and economic performance. Among these, the volume of investment plays a crucial role as it directly impacts capital formation, leading to increased production capabilities. Technological advancements are essential as they improve efficiency and productivity, allowing economies to produce more with the same resources. The rise in international trade expands market access for goods and services, often resulting in increased economic activity and specialization. In contrast, while weather patterns can affect specific sectors such as agriculture, they do not generally influence the overall economic growth of a country in the same systematic way as the other factors. Weather can impact productivity temporarily, but it is not a consistent or long-term driver of economic growth like investment, technology, or trade. Therefore, this factor is less pertinent when considering the broader elements that shape sustained economic growth.