Chapter 19.3, Problem 2R

To determine

The way mentioned factors may result in slow growth of an economy.

Explanation of Solution

Obstacles	Effects
Local traditions	Nations with low values or culture and beliefs may decline the growth of the economy as views of the people through which the economy is formed plays an important role in the development of the nation.
Rapid population growth	Because of the rapid population growth, there is lack of food availability & resources. The population pressure has caused destruction of land by its overuse & has even led to massive unemployment which has slowed down the growth of the economy.
Misuse of resources	Misuse of resources or not doing the optimum utilization has declined the resources for the growing population which has created lack of food availability for every individual and the economic growth has been slowed down.
Corruption	Corruption has widened the gap between the rich & the poor as richer is becoming richer by taking the advantage in the form of corruption by the lower classes of the society. It has increased the black market operations in the economy because of which the growth has been hampered.
Trade restrictions	Trade restrictions have caused a restriction on the international trade between the nations which has made it difficult for the nations to make available all the resources at low cost to the consumers & through which the growth rate has declined.