3.1 Economic Growth

Question 1

Economic Growth

Answer 1

Growth in GDP (value of output)

Question 2

Gross Domestic product (GDP)

Answer 2

Total value of goods and services produced in an economy in a year

Question 3

GDP per captia

Answer 3

GDP divided by the population

Question 4

The determinants of economic growth

Answer 4

Achieved through an increase in the quantity or quality of factors of production

Question 5

Investment

Answer 5

Spending on capital goods

Question 6

Changes in technology

Answer 6

Better technology leads to better quality of capital

Question 7

Size of workforce

Answer 7

A larger workforce means there is more labour (a factor of production)

Question 8

Education and training

Answer 8

An increase in the skills of the workforce will improve the quality of labour

Question 9

Availability of natural resources

Answer 9

If there is the discovery of more natural resources, it enables an economy to grow.

Question 10

Government policies

Answer 10

Government investment in infrastructure; management of the macroeconomy and having adopted a mixed economy