2.5.4 Impact of economic growth

Question 1

Give 2 benefits of growth to consumers

Answer 1

• higher income

- improved public services

Question 2

Give 4 costs of growth to consumers

Answer 2

• inflation
• environmental costs
• increase of inequality
• increased crime due to materialism

Question 3

Give 4 benefits of growth to firms

Answer 3

• increased revenue and profits
• higher employment
• more sales and profits

Question 4

Give 1 cost of growth to firms

Answer 4

• higher wages = higher costs

Question 5

Give 1 benefit of growth to the government

Answer 5

increased revenue

Question 6

Give 1 cost of growth to the government

Answer 6

inflationary pressure

Question 7

Give 4 benefits of growth on long run living standards

Answer 7

• higher income
• better infrastructure
• better healthcare

Question 8

Give 1 cost of growth on long run living standards

Answer 8

• people become more materialistic so crime could go up