3.1 Economic Growth Flashcards
1
Q
Economic Growth
A
Growth in GDP (value of output) over time
2
Q
GDP (Gross Domestic Product)
A
The total value added of goods and services produced in the country in a year
3
Q
Rate of Growth
A
Change in GDP/Original GDP * 100
4
Q
GDP Per Capita
A
GDP divided by the population
5
Q
Boom
A
Period of high economic activity and high levels of employment
6
Q
Recession
A
Period when the country’s GDP falls for two (or more) consecutive quarters
7
Q
Labour Force (workforce)
A
The number of people who work in a country
8
Q
Determinants of Economic Growth
A
- Investment
- Technology Changes
- Education and Training
- Labour Productivity
- Workforce Size
- Natural Resources
- Government Policies
9
Q
Benefits of Economic Growth
A
- Rise in Material Living Standards
- Reduction in Poverty
- Rise in Welfare of Population
- Rise in Employment and Fall in Unemployment
10
Q
Costs of Economic Growth
A
- Environmental Costs
- Congestion
- Loss of Non-Renewable Resources
- Lower Quality of Life
- Income and Wealth Inequalities
- Inflation
